China Economic Proprietary Indicators

Goldman Sachs' proprietary indicators for May show a deceleration in China's economic activity to 4.6% and a significant downside surprise in macro data. The slowdown was led by consumer sectors, while fiscal policy tightened despite continued easing in property sector regulations.

Key Takeaways

• 1.The China Current Activity Indicator (CAI) slowed to +4.6% in April from +5.8% in March, primarily driven by consumer sector weakness.
• 2.Macroeconomic data significantly underperformed market expectations, with the MAP surprise index reaching its worst level since May 2023.
• 3.Domestic macro policy tightened in April, largely due to a contraction in fiscal policy and a narrowing of the augmented fiscal deficit.

Table of Contents

• GS Proprietary Economic Indicators
• Methodology notes for GS proprietary economic indicators
• The China Economics Team
• Disclosure Appendix

Document Preview

Page 1 of 5

Subscribe for full accessStart Free Trial