China factories restarted, but getting consumers spending is tougher

The NY Times have a piece up (link here if its not gated for you)

Pretty much nail the problem, what we have been seeing in the PMIs and other data:

• China … has a big problem with its spenders
• As the coronavirus outbreak ebbs in China … Its factories, brought to a standstill when the coronavirus outbreak swept through the country in January, are humming again
• Empowering consumers could be the tougher task. Many lost their jobs or had their pay slashed

I posted yesterday an the surge in unemployment:

• China analysts said unemployment at 20% (vs,. officially at 5.9%) - withdraws their report

And:

• Real disposable income growth is down around 4% (March figure)
• Retail sales in March -15.8%
• PPI is negative

Lack of demand and deflationary pressure (which will be exported) and excess capacity is going to take some recovering.