- China’s high-inventory cycle has ended following the tepid manufacturing activities since Apr-23. China’s dwindling inventory levels may put an end to the China-driven global goods disinflation.
- The Chinese government’s different approach regarding fiscal stimulus limits the impetus for manufacturing expansion in China, limiting the risk of renewed inflationary pressure in the commodity market.
- Diminishing competition from cheap imported goods and normalising industrial commodity prices may improve the outlook for Indonesia’s manufacturing sector in the upcoming period.
