The industrial output data for China along with the retail and investment sales are due on Monday and they have been expected to be showing a contraction across the board for the very first time as there is an evidence of the extent to which the economy has been ravaged by coronavirus.
Data has been released on the combined basis due to the normal swings seasonally around the holiday of the Lunar New Year.
The attempts to slow down this epidemic has been spreading suddenly paralyzed the economy of China in the break and forced the consumers for cutting the spending and staying home, the factories for extending their halt of production and trapping many million people very far from where they are working. This has crippled the activity all over economy as the home and car sales have slumped and the travel and trade have been interrupted.
Most probably in the January to February Period, it is going to be the lowest point in the year and the growth momentum has been improving in the month of March however the present consensus of the GDP growth of 4% in first quarter is going to be under the pressure post this data. The bad news has been that the recovery is a lot slower than the expectations while the good news is that the economy has been showing recovery.
The PBOC has been pumping $79 billion for the banks for the economy which is weakened by the Virus.
The Central Bank on Friday had acted for the softening of the blow and helping this economy and providing these banks a lot more money for lending by cutting amounts of cash which they might place in the reserve at People’s Bank of China.