China's economy didn't bounce back in the second quarter, China Beige Book survey finds

cnbc.com:

BEIJING — Chinese businesses ranging from services to manufacturing reported a slowdown in the second quarter from the first, reflecting the prolonged impact of Covid controls.

That's according to the U.S.-based China Beige Book, which claims to have conducted more than 4,300 interviews in China in late April and the month ended June 15.

«While most high-profile lockdowns were relaxed in May, June data do not show the powerhouse bounce-back most expected,» according to a report released Tuesday. The analysis found few signs that government stimulus was having much of an effect yet.

Shanghai, China's largest city by gross domestic product, was locked down in April and May. Beijing and other parts of the country also imposed some level of Covid controls to contain mainland China's worst outbreak of the virus since the pandemic's initial shock in early 2020.

In late May, Chinese Premier Li Keqiang held an unprecedentedly massive videoconference in which he called on officials to «work hard» — for growth in the second quarter and a drop in unemployment.

Between the first and second quarters, hiring declined across all manufacturing sectors except for food and beverage processing, according to the China Beige Book's report.

Unsold goods piled up, except in autos. Orders for domestic consumption and overseas export mostly fell in the second quarter from the first. Orders for textiles and chemicals processing were among the hardest-hit.

The only standout domestically was IT and consumer electronics, which saw orders rise during that time. Orders for export grew in three of seven manufacturing categories: electronics, automotive and food and beverage processing.

«Weak domestic orders and expanding inventories indicate the