The eco watchers survey for current conditions is expected to show a score of 48.1, up from 47.5 in September.
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Moderate inflation can be a boon to consumption as it pushes buyers to act before prices go up, while falling prices encourage shoppers to delay purchases and companies to put off investment, both of which can hurt growth. “We expect deflation pressure will continue to be there”, Claire Huang, China economist at Societe Generale in Hong Kong, told AFP.
China’s GDP increased 7.0% in each of the first two quarters and the country logged its worst ec …
China’s producer-price index dropped 5.9 per cent in October from a year earlier, flat against a 5.9 per cent year-over-year drop in September. On a monthly basis, consumer prices edged down 0.3 percent, reported Xinhua news agency.
In early European trade the main stocks markets rose, rebounding from the previous day’s losses.
In Mumbai shares in India’s largest carrier IndiGo soared nearly 18 percent on their debut, with confident traders betting on the country’s growing appetite for air travel.
Analysts at BNP Paribas described a 5.9pc decline in producer prices over the same period as “dire”.
On Friday, Caixin Magazine quoted China’s vice minister of finance indicating a fiscal deficit of 3 percent, well above the current planned 2.3 percent for 2015, might still be considered within a safe range.
China’s top brass, which has been facing the daunting task of securing new growth drivers, decided late last month that annual rate of increase in gross domestic product should be no less than 6.5 percent in the next five years to achieve its goal of building a “moderately prosperous society” by 2020.
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China is already in its biggest easing cycle since the height of the financial crisis, but low inflation means that real interest rates remain high for many firms, especially manufacturers many of whom have already endured several years of falling factory gate prices.
