Latest news with #real economy
Bloomberg
5 days ago
- Business
- Bloomberg
China's Rare Lending Slump Feeds Worry on Slower Economic Growth
China's first contraction in outstanding loans since 2005 has crystallized worries about a deepening downturn for the world's second-largest economy. Instead of putting money to work, households and companies are paying down their debt as they take a more dim view of their prospects, threatening a self-fulfilling cycle of economic underperformance. The longest deflation streak since at least the 1990s is also suppressing demand for borrowing, contributing last month to a 430 billion-yuan ($60 billion) decline in loans to the real economy — the most on record going back to 2002.
Bloomberg
6 days ago
- Business
- Bloomberg
China's New Loans Plunge to Lowest Since 2007 as Demand Weakens
China's credit expansion rebounded less than expected in July from a year ago with a key loan gauge falling to the lowest since 2007, despite the boost from a surge in government bond sales. Banks are usually in no rush to meet their quarterly loan targets in July, putting the brakes on financing activity. A year ago, bank credit to the real economy contracted for the first time since 2005, as domestic demand slumped with the economy caught in a deflationary cycle.
