MARKET OUTLOOK - Economic Momentum Appears to Improve in China

Foreks - Capital Economics economist Gabriel Ng stated that China's overall economic momentum appears to have improved, despite a slowdown in factory activities, due to faster growth in the services and construction sectors. Ng noted that the recent PMI data indicates that the quicker growth in the services and construction sectors is offsetting the weak performance in the manufacturing sector. He emphasized that increasing policy support towards the end of 2024 is providing short-term support to growth, aligning with Capital Economics' expectations of accelerating quarterly GDP growth in the fourth quarter.