4 percent gain expected by economists

more stimulus measures expected

BEIJING, Oct 15 (Reuters) China consumer inflation slowed more than expected in September to a near five year low, Canada Goose Online adding to concerns that 2018 canada goose outlet global growth is cooling canada goose coats fast unless governments take bolder measures to shore up their economies.

While much of the decline was due to falling prices for food, fuel and other commodities, which are benefiting consumers globally, canada goose outlet store locations the data also pointed to broad weakness in the world second largest economy.

Facing mounting risks to growth and rising risks of deflation, Beijing is widely expected to continue rolling out a steady stream of canada goose deals stimulus measures in coming months, though most economists believe it will hold off on more aggressive action such an interest rate cut unless conditions sharply deteriorate.

in Beijing should begin to be concerned that global disinflationary pressures are spreading to China, said Dariusz Kowalczyk, senior economist at Credit Agricole CIB in Hong Kong.

low inflation readings will open the door to further targeted monetary and fiscal buy canada goose jacket cheap easing. There is also less need for a strong currency to offset imported Canada Goose sale inflation.

The consumer price index (CPI) rose 1.6 percent in Canada Goose Parka September from a year earlier, the National Bureau of Statistics said on Wednesday, missing market expectations for a 1.7 percent rise and down from 2 percent in August.

The reading was the lowest since January 2010, and was also partly due to a relatively higher base of comparison a year ago, officials said.

Inflation is also easing in other parts of Asia from India to South canada goose coats on sale Korea, where the economy is also sputtering and facing growing fears of deflation.

But price softness buy canada goose jacket in China was not all down to food and fuel. Its data also showed further downward pressure from the cooling housing market, which economists say is the biggest single risk facing China economy.

The CPI rose 0.5 percent in September from the previous canada goose month, versus a 0.4 percent gain expected by economists.

low inflation readings suggest rising risks of deflation in China due to weak domestic demand. It confirms our view that risks to growth are still on the downside, and further policy easing measures are needed, HSBC economists said.

With inflation well below the official annual target of 3.5 percent, topparka Chinese policymakers have ample scope to announce more stimulus, on top of a flurry of steps earlier in the year.

But as neighbouring Japan and many Western countries have found, simply injecting a mountain of money into the system may have limited impact on the real economy if demand is too weak to absorb it and banks remain reluctant to lend.

Late last month, China cut mortgage rates and downpayment levels for some home buyers for the first time since the 2008/09 global financial crisis, in one of its biggest support moves this year.

Still, some economists canada goose replica believe the chances of bolder policy action are rising.

gains (in) non food prices and the worsening PPI provide more evidence of a weakening economy, which means the problems canada goose black friday sale of weak domestic demand and over capacity are more severe than expected, said Li Huiyong, an economist at Shenyin Wanguo Securities in canadian goose jacket Shanghai.

expect policymakers will take more measures to stabilise the economy. The possibility of an interest rate cut is increasing in the coming months.

Highlighting the increasing strains on companies in China, the producer price index (PPI) fell 1.8 percent, its 31st consecutive monthly decline, dragged by lower oil and steel prices. The market had expected a 1.6 percent fall in producer prices after a canada goose store drop of 1.2 percent in August.

Weakening demand is not only curbing companies pricing power and cutting Canada Goose Jackets into their profit margins but putting increasing strains on their balance sheets and ability to canada goose clearance sale pay back canada goose outlet toronto factory debts, canada goose outlet toronto factory posing a growing threat to cheap Canada Goose other companies they deal with and ultimately the banking system.

Chinese companies have issued a steady stream of profit warnings in recent weeks, with many reporting slowing sales. Some said they were postponing or cutting back on planned expansions at home and overseas, and were more reluctant to grant credit to canada goose clearance customers.

Major construction machinery maker Zoomlion Heavy Industry Science and Technology Co Ltd said on Tuesday it expects third quarter net income to fall as much as 90 percent, mostly due to slowing investment in the real estate sector.

Zoomlion told analysts earlier this year that it had rejected some 15 percent of new orders for concrete pumps for fear customers would not Canada Goose online be able to pay for them, and it is now asking potential buyers for downpayments.

The country second biggest steelmaker, Baoshan Iron and Steel (Baosteel), said on Friday it will cut prices for November delivery. China steel demand has dropped this Canada Goose Outlet year for the first time in at least 14 years.

Still, top policymakers have issued a steady stream of reassurances about the economy in recent days, citing among Canada Goose Coats On Sale other things a strong services sector and a still resilient labour market.

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