Chinese manufacturing hits 9-month low

[alp227]

Source: Financial Times

China’s economy weakened further in August, according to a survey of the manufacturing sector that fell well short of expectations.

The purchasing managers’ index, an important gauge of industrial activity, slouched to 49.2 in August, a nine-month low. It had been forecast to stay roughly level with July’s 50.1 reading.

Analysts had long predicted that China’s economy, slowing since early last year, would enjoy a rebound by about now, but the sluggish PMI points instead to a more serious downturn. That will be unwelcome news for the world economy as Europe slides towards another recession and the US struggles to gain momentum.

“China’s manufacturing sector continues to struggle, weighed down by a significant domestic slowdown, a wholly unsupportive external climate and a completely insufficient policy response,” economists with IHS Global Insight wrote in a note. “The government has underestimated the pace of the slowdown and is behind the curve.”

Read more: http://liveweb.archive.org/http://www.ft.com/cms/s/0/57946cfc-f400-11e1-9921-00144feabdc0.html

[Robeysays]

1. it begins. nt

[dixiegrrrrl]

7. Yep..I agree.

[sendero]

8. I think the Chinese...

... are about to have their 2007 moment. Bubbles work the same everywhere.

[Diclotican]

2. alp227

alp227

This is the start of the beginning.... PRC have for many years been able to manipulate their economy, and even though they do have a big population, who could "cushion" most of the problems - it is still a lot of bobbles in this economy, who could burst anytime soon. And then, we are really into problems...

Diclotican

[Marthe48]

3. Gotta have a healthy middle class

whether it is one country or many, people have to have a decent income with discretionary spending, and have confidence their life isn't going to crash down around them. Otherwise, almost any product is going sit on the shelf, no matter who makes it.

[lib2DaBone]

4. By all means.. let's ship whats left of our technology there...

Let's give China High Speed computers and all of our latest manufacturing technology.

Make sure we get NOTHING in return.

Then when China kicks our ass.. we can all act surprised. How did this happen?

[Billsmile]

5. Since we Don't Manufacture Stuff in the USA Anymore...

Americans don't have money to but Chinese goods anymore.

[tomm2thumbs]

6. sounds like good reason for thousands of small business engines to start revv'ing in the US

local, home-grown industry has a real chance to turn the tide around... and being able to turn on a dime and flexibly adapt to consumers locally is one thing that this country can do better than large, oversized monster plants that retool over months/years in a foreign land with huge shipping times and product lead times