China has also said it is recovering economically, indicating that recovery in the world’s second-largest economy is slowing.
In China, meanwhile, signs of another wave of the virus could trigger an already slow economic recovery.
Industrial production, investment activity and retail sales have improved somewhat in recent months, according to data released by China’s National Bureau of Statistics on Monday. Also, the three measurements fell below the forecasts of analysts asked by Refinitiv.
“Ultimately, it is the willingness of consumers to leave their apartments in the face of a permanent social distance – either by government order or by consumer behavior – [that] it will dictate the speed of recovery, “wrote Stephen Innes, chief strategic officer for global markets at AxiCorp. But China’s consumer recovery is not moving fast beyond imagination. “
However, some economists have shown positive signs. The country’s services sector expanded for the first time this year, according to China’s National Services Industry Index. The index measures the change in production in the service sector each month.
“Total economic output returned above 2019 levels in May for the first time since the outbreak of Covid-19,” wrote Martin Rasmussen, a Chinese economist for Capital Economics. “We had previously thought that China’s economy would not return to positive annual growth until [the third quarter]. But today’s data shows that this milestone can be achieved this quarter. “
The oil also moved lower. US oil contracts fell 4.1% to $ 34.76 a barrel. Brent, the global oil benchmark, lost 3.4% to $ 37.49 a barrel. Brent and U.S. oil prices both fell more than 8% last week amid concerns about the resurgence of the pandemic.
– Matt Egan and Anneken Tappe contributed to this report.