He said China’s consumer spending has been “more sluggish” because, unlike in the U.S., stimulus measures were not directed at income replacement. “But I think given the good control of domestic transmission of the virus in China, we are seeing services activity come back there as well,” he told CNBC’s “Street Signs Asia” on Monday.
The global lockdown triggered by coronavirus outbreak hit world economies really hard, but there is now “reasonable momentum” globally, Tilton said. Recent purchasing managers’ indices were mostly better compared to a month ago, suggesting that momentum in the industrial sector remains good, he said. “We’re still reasonably upbeat on the recovery going into 2021.”
Tilton added that if Democratic presidential nominee Joe Biden were to win the election, it would affect Washington’s tariff and trade policies. “We do think the result is very important for Asia and for global activity broadly.” He also said new stimulus measures from Washington would be good for Asia. “Fiscal stimulus in the U.S. would have positive spillover effects in terms of growth to Asia,” he said.
The Democratic-held House approved a $2.2 trillion stimulus proposal last week, but the bill is unlikely to be passed by the Republican-controlled Senate. Treasury Secretary Steven Mnuchin offered a $1.6 trillion plan in response.