Nomura bumped its forecast for 2023 economic growth in China higher, to 4.8% from previously at 4.6%.
Bank of America have dialled back the pessimism on China also. They have been touting improving domestic and investment demand and have now spotted a 'green shoot' in the profits data that was released yesterday:
From BoA's note:
- Both industrial profit & revenue growth improved in August, both turned positive
- Profit growth improvements seen across the board
- within upstream sectors, electricity, heat production & supply improved the most in profitability, while profit growth in other subsectors was also helped by the stabilization in PPI
- A green shoot, while the sustainability likely to persist ... which suggests the worst growth may be behind us
