Market Outlook: Deflationary Pressures in China May Persist into December

Forex - UOB economist Ho Woei Chen believes that deflationary pressures in China likely continued in December, despite the expansion in economic activity. In a note published, he stated that deflationary pressures in the industrial sector persisted due to a sharper contraction of output prices compared to input prices. The economist expressed that the country's official manufacturing and non-manufacturing PMIs indicated that economic activities continued to expand. Ho mentioned that the Chinese economy is continuing to stabilize thanks to government incentives. Consumer prices for December in China will be announced on January 9.