Skip to comments.[Red] Chinese manufacturing hits three-year low
Posted on 09/03/2012 1:09:18 AM PDT by bruinbirdman
China's manufacturing activity fell to its lowest level in more than three years in August as the global economic slowdown continues to weigh on the world's largest exporter, HSBC has said.
The final reading of the British banking giant's closely-watched purchasing managers' index (PMI), which gauges nationwide manufacturing activity, slid to 47.6 last month from 49.3 in July, HSBC said in a statement.
This was the lowest since March 2009 and marked the 10th consecutive monthly fall, the bank said. It chimed with the official PMI figure released at the weekend, which hit a nine-month low of 49.2.
A PMI reading above 50 indicates expansion, while one below 50 points to contraction.
HSBC economist Qu Hongbin said the figures showed China's manufacturing sector faced "intensifying downward pressure" and urged the government to step up easing measures.
"China's exporters are facing increasing difficulties amid stronger global headwinds," he said, adding new export orders contracted last month at the sharpest pace since March 2009 while employers cut jobs at the fastest rate in 41 months.
Authorities have tried to boost the economy with interest rate cuts and by lowering the amount of reserves that banks must keep on hand in a bid to spur the kind of lending that could stimulate
(Excerpt) Read more at telegraph.co.uk ...
How can they be having 10% annual growth, a weak middle class, and collapsing exports?
you could grow without exports
We calculate GDP this way.
GDP is defined as C (consumption) + I (investment) + G government spending) + (x [exports] - i [imports]).
They calculate it like this.
GDP is defined as C (consumption) + I (investment) + G (government spending) + (x [goods produced] - i [imports].
Notice exports aren't included in their calculations.
Good catch, although of course “G” is the most fraudulent term. It’s based on borrowing, printing money out of thin air and deficit spending.
Their biggest customer is broke.
China will raise quality and prices for it’s products. There are no competitors anyway for 98% volume of consumer goods.
“Red” Chinese? Whadda ya mean? Doncha know that we ain’t s’posed to call commies “reds” anymore?
No, “red” is what we now are supposed to call Republicans!
The Chicoms calculate it as P (production) period. Sales (consumption) do not enter the calculation.
The Communists over-produce cement just about equal to total production outside Red China, yet they count it in GDP.
All those ghost cities? Included in GDP.