Signs of weakening from the Chinese economy

In China, where Covid measures have been relaxed, economic activity is being negatively affected. In China, where Covid measures have been relaxed, the fact that citizens of the country are taking their own precautions after millions of cases have emerged is negatively affecting economic activity. According to Bloomberg's cumulative index compiled from eight leading data, December economic activity declined compared to November. The Chinese economy was also struggling before the lifting of Covid restrictions. However, according to high-frequency data, despite the lifting of the restrictions, the mobility of Chinese citizens has not shown a rapid recovery. In the capital Beijing, 70 percent fewer subway trips were made last Thursday compared to 2019. Traffic density also reached 30 percent of January 2021 levels. The decrease in mobility also negatively affects retail sales. Signs of further decline are seen in Chinese retail sales, which have not been able to recover during the Covid period. Automobile sales, which are the half-full side of the glass in Chinese retail sales data, have also started to decline since November. On the other hand, the Covid spread continues with the lifting of the measures. In China, many major cities expect the number of cases to peak in January after the National Health Committee stopped publishing statistics.