China's economic recovery showed signs of faltering in October, with a slowdown in its consumption rebound and a decline in private business confidence, as per independent surveys and alternative data. Reports from QuantCube Technology and Morning Consult indicated reduced consumer demand for recreation and transport, alongside a drop in consumer sentiment. The Cheung Kong Graduate School of Business also noted a decrease in private business sentiment. Despite Beijing's fiscal stimulus, including a significant government bond issuance, challenges in boosting consumer demand persist. Weak demand for long-term loans and heavy reliance on government borrowing underscore the economic hurdles. Allan Von Mehren of Danske Bank emphasises the need for continued stimulus, particularly in housing and consumer sectors, to sustain growth near the government's 5% target.
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