China's economy showed signs of picking up in June, driven in part by a rebound in shipments to the U.S., according to the China Beige Book survey. The survey of 1,321 businesses found that manufacturing saw the clearest improvement and retail sales recovered nicely, with a surge in luxury goods sales but weaker tourism-related spending. Factory activity accelerated and U.S.-bound orders saw sharp year-on-year gains, while export order growth to Asia and other developing countries slowed and growth to Europe held steady. China's exports to the U.S. grew 11.3% in April and 35.4% in May, and freight rates between Asia and the U.S. climbed to their highest in nearly two years as importers frontloaded shipments ahead of potential tariff increases. Goldman Sachs revised up its third-quarter GDP growth forecast to 5% from 4.5% quarter-on-quarter annualized, citing lower oil prices and faster fiscal spending.
Goldman Sachs Group IncGoldman Sachs revised up its Q3 GDP growth forecast for China, reflecting its own positive outlook.
China Automotive Systems IncChina's economic pickup and rebounding U.S. exports may boost demand for auto parts, benefiting China Automotive Systems.
S&P Global Inc