China’s Economy Didn’t Bounce Back In The Second Quarter, China Beige Book Survey Finds

  • Chinese businesses ranging from services to manufacturing reported a slowdown in the second quarter from the first, reflecting the impact of the recent lockdown in Shanghai. This statement was made by the U.S.-based China Beige Book, which claims to have conducted more than 4,300 interviews in China in late April and the month ended June 15. 
  • “While most high-profile lockdowns were relaxed in May, June data do not show the powerhouse bounce-back most expected,” The analysis found few signs that government stimulus was having much of an effect yet. 
  • Shanghai, China’s largest city by gross domestic product, was locked down in April and May. Beijing and other parts of the country also imposed some level of COVID controls to contain mainland China’s worst outbreak of the virus since the pandemic’s initial shock in early 2020. 
  • Between the first and second quarters, hiring declined across all manufacturing sectors except for food and beverage processing, according to the China Beige Book report. The employment situation likely won’t start to improve until China stimulates its economy more in the fall, China Beige Book Managing Director Shehzad H. Qazi said on June 29, 2022, on CNBC’s “Squawk Box Asia.”

(Source: CNBC)