China’s economic rebalancing is reversing – China Beige Book

China’s latest Beige Book release shows the process of economic rebalancing – transition of investment led growth to consumption driven growth – is reversing.

The report shows the third quarter growth was mainly driven by manufacturing, commodities as opposed to crucial parts of the “new economy” - retail, services and transportation – whose performance was dismal.

The latest report also talks down the performance of the service sector. Retail spending was one of the weakest in the history of Beige Book quarterly survey.