2014-02-07 17:55:01 - China Freight Transport Report Q1 2014 - a new market research report on companiesandmarkets.com
China´s economy appears to be finally buckling under the weight of its credit binge. Despite record new credit issuance in recent months, the manufacturing sector has once again entered contraction in line with our view. Efforts to reform and rebalance are too little too late to avoid the hangover effects of past stimulus measures, and we believe that a recession is at hand, with negative knock-on effects for the freight transport sector.
The slowdown in China´s economic growth is projected to continue in 2014, with growth of 6.7% predicted to follow estimated growth of 7.5% in 2013. The slowdown in China´s economic growth, while a worry for freight transport operators exposed to this sector, as expansion plans may have to be
curtailed, is not as big a threat to the sector in the short term as that of the demand outlook for China´s key export markets of the US and eurozone.
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