“And as supply chains continue to heal, we should start also seeing the productivity or cost reductions in our cost of goods to start showing up in the second half.”

In context

“ng you are seeing here through April maybe that gives you confidence that things there are getting better? Thank you. Monish Patolawala: Yes. So, Chris, we did call out down 20%. It’s pretty much played out exactly where we expected it to be when we gave you the first quarter guide. And in the second quarter, currently, we are expecting China to be down low-single digits to mid-single digits. But sequentially, a few days into April, it’s pretty much playing out where we saw. And just talking to customers, talking and looking at all the external factors, there is an expectation that China GDP grows and increases in the second half sequentially and year-on-year. And our full year guidance, as I have talked about, assumes overall recovery in all economies in the second half, including China. And as supply chains continue to heal, we should start also seeing the productivity or cost reductions in our cost of goods to start showing up in the second half. And so sitting right now, that’s how we see China. China was impacted heavily by consumer electronics down in the first quarter, and that’s also reflected in our results. Chris Snyder: Thank you for that. And then for my follow-up, I wanted to ask on the destocking that you are seeing at the customer level. I think you guys called out retail as destocking year-to-date. And then we have seen the same in the data. Can you maybe just talk about where you think the supply chain is in that destock cycle? Thank you. Mike Roman: Yes. Chris, we talked a bit about the consumer retail destocking as we came into the year, and we saw that play out in Q1. There – I would say, in the U.S., in particular, retail has been destocking in the discretionary categories. And we saw that, and that was part of o”