ChinaFotoPress/Getty ImagesGrowth across China’s services sector slowed to a crawl in December, fueling fears that economic growth within the country is faltering.
The latest Caixin-Markit services PMI gauge fell to 50.2 from 51.2 in November, the lowest level seen since July 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.
The outlook for the global economy became bleaker on Wednesday as signs of a deeper manufacturing downturn in China emerged, coupled with slow growth in Europe and the United States. "There is substantial concern at present that global demand weakness is dampening the economy in the industrial countries," said Jorg Kramer, chief economist at Commerzbank. China's factory sector activity shrank at its fastest rate in more than 6 years in September, according to the monthly Caixin/Market survey, sending investors worried about sagging global growth scurrying out of risky assets.
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.
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.