China still on track to have a 5% growth for the year: Manish Singh

economictimes.indiatimes.com:

" To some extent, though, it should not come as a surprise if you have been looking at last six months' data. So, the PPI number has been negative for at least three or four months now and this is just confirming things that we have discussed in the past," says Manish Singh, Crossbridge Capital.

A few days back, China reassured that economic growth is on track, that there are many favourable spots despite some pressures and difficulties but the data that has just come out seems to be claiming otherwise. What is your take and that further dampens investor confidence, does not it? To some extent, though, it should not come as a surprise if you have been looking at last six months' data.

So, the PPI number has been negative for at least three or four months now and this is just confirming things that we have discussed in the past. If you look at the negative number that you have seen in China, it is a warning sign that where we are heading first in US and then in Europe because as I have repeatedly said that disinflation is the problem, not the inflation.

I think inflation is behind us. We will get the US CPI number on Wednesday, which is likely going to be around 3% on headline basis.

And if you look at the last 9, 12-month data, then inflation is just not there. Of course, it is higher than 2%, but it is not at 9.1% which is what we saw in June last year and this is just feeding into that we are going to revert back to the pre-COVID days when the supply chain and everything reorients and the productivity or the efficiency of producing things just keeps going up with time because of use of technology and then you are faced with — is there enough demand? You can produce things faster, but is there enough demand to keep the