MNI BRIEF: China Needs Special Actions To Boost Consumption

Authorities need to continue implementing special actions to boost consumption, focus on stabilising employment and increasing incomes, Fu Linghui, spokesperson of the National Bureau of Statistics, told reporters on Monday, after data released earlier in the morning showed retail sales growth had slowed to 1.3% y/y in December. 

Residents' consumption capacity and confidence needs to be further improved and the endogenous driving force of consumption growth still needs to be enhanced, Fu added.

China’s steel rebar futures are set to face further downward pressure over the next two-to-three months, as expectations for major stimulus and a sharp demand rebound fade, local analysts told MNI, noting that anticipated “anti-involution” production cuts have also fallen short of earlier hopes. (See MNI: China's Steel Futures Face Near-term)