Beijing (AsiaNews / Agencies) - The trade prospects for the next three months have fallen to the lowest level in eight years. Although the oracles of the Year of the Goat are favorable, China MNI commercial indicator claim the opposite.
The various factors lowering expectations include a reduction
in loans to companies which has dragged the index down to 52.8, the lowest
since March 2007. In January it was 53.7.
According to Philip Uglow, chief economist of the MNI Indicators, "The
beginning of 2015 shows that it will be a difficult year."
In an effort to ease liquidity, China's central bank cut the interest rate on currency
last November and in February reduced the level of reserves that commercial
banks should maintain.
The MNI report states that liquidity
released by the central bank has not yet flooded the companies, among which
there are mainly manufacturing and service industries.
This pessimism seems to be spreading, also affected by deflation, which is
leading to lower prices.