While there have been some mildly-positive signs for China’s economy in recent weeks, that has come to a shuddering halt today. The Caixin-Markit China flash manufacturing PMI report, a gauge on activity across small to medium-sized firms, slumped in July. The index fell to 48.2, down from 49.4 in June. Markets had been expecting a rise to 49.7. The figure was the lowest level seen since April 2014.
Markit has new reports out today on service activity in China and Japan.The former shows a bit of growth, the latter contraction. Because the reports are diffusion indices that give no weighting to the size of the companies reporting, one must look at these reports with a broad brush.Japan Business Activity Contracts
Beijing (AFP) - China's manufacturing sector saw a surprise pick-up in September, a closely watched survey showed Tuesday, providing some respite after a string of weak data pointing to a slowdown in world's second-largest economy.
BEIJING (Reuters) - Growth in China's factories slowed slightly in December as export orders and output weakened, official data showed on Wednesday, adding to views that while the world's second-largest economy remains resilient, it lost some steam in late 2013.
NEW DELHI: Shanghai stocks slumped 8.48 percent on Monday, defying government efforts to prop up the market, on worries the world's second largest economy is heading for a sharp slowdown, dealers said. The Shanghai Composite Index closed down 345.35 points to 3,725.56 on turnover of 721.3 billion yuan ($117.9 billion). The Shenzhen Composite Index, which tracks stocks on China's second exchange, slid 7.00 percent, or 162.62 points, to 2,160.09 on turnover of 667.7 billion yuan. So, why are analysts and investors worried about the Chinese economy?
Econ Grapher submits:This week we review some of the recent data out of China; first up is a look at the recent slowing in industrial production, followed by signs of slowing in consumer spending. Then we look at the inflation results, which show a potentially short term pick up in inflation. Finally we examine the growth of the money supply and growth in lending; where both measures are slowing due to recent policy moves to install a managed slowdown to counter potential overheating and asset bubbles.
Michael Johnston submits:China’s Purchasing Managers Index rose for the tenth consecutive month in December, signaling a steady expansion in the country’s manufacturing sector. According to the China Federation of Logistics and Purchasing, the index increased to 56.6 in December, up from 55.2 in November. A reading above 50 indicates growth, while a reading below 50 indicates contraction. Of the 11 categories that compose the PMI, nine rose, one fell, and one was unchanged in December compared with November.