China: Uncertain economic environment overshadows the party plenum

Firms’ sales outlooks are mostly unchanged from last quarter and remain more pessimistic than average. Businesses tied to discretionary spending reported particularly weak sales expectations, while those tied to essential spending see population growth continuing to benefit their sales. • Investment spending plans also remain below average. Weak demand, elevated interest rates, uncertainty about the business environment and the high cost of machinery and equipment were cited as discouraging investment. In this context, investment spending has become increasingly concentrated on upkeep and repair rather than expansion or improvements in productivity. post: BoC Business Outlook Future Sales Q2: 1.00% (prev 1.00%) - Overall Business Outlook Survey: -2.9 (prev -2.4) post: BOC SURVEY: BUSINESSES ACROSS ALL REGIONS, SECTORS REPORTED THAT LABOR MARKET CONTINUED TO EASE; ON BALANCE, FIRMS NO LONGER SEE A NEED FOR HIGHER WAGES TO ATTRACT OR RETAIN WORKERS post: BOC: CANADIANS BLAME INFLATION ON HIGH GOVERNMENT SPENDING AND HOME PRICES. post: BOC: CONSUMER 1Y CPI EXPECTATIONS FALL SIGNIFICANTLY TO 4.1%, SURVEYS SHOW SUBDUED INFLATION EXPECTATIONS.