Six warning lights flashing for China’s slowing economy

BEIJING (Reuters) – China’s $13 trillion economy is slowing and indicators showing that range from freight shipments to factory power generation and from employment to expenditures on entertainment. A crane lifts a container from a truck next to a cargo vessel at a port in Yantai, Shandong province, China October 17, 2019. REUTERS/Stringer China releases…

Six warning lights flashing for China’s slowing economy

BEIJING (Reuters) – China’s $13 trillion economy is slowing and indicators showing that range from freight shipments to factory power generation and from employment to expenditures on entertainment. A crane lifts a container from a truck next to a cargo vessel at a port in Yantai, Shandong province, China October 17, 2019. REUTERS/Stringer China releases gross domestic product data on Friday, a key indicator for global growth since even small changes in China’s economic performance can have ripple effects for other major economies. Economists expect China’s growth has slowed to near its lowest since 1990 because of the escalating trade conflict with the United States and weakening domestic demand. That slowdown appears to be deepening despite a weakening currency and steps by Beijing to provide stimulus, including cuts in taxes and fees equivalent to about $282 billion. China’s third-quarter GDP is expected to grow 6.1%, according to a Reuters poll. Some analysts expect growth to have dipped beneath 6% for the quarter, below the bottom of the government’s growth target for 2019. Below are six indicators pointing to the state of China’s slowdown. (Graphic: Employment – here) MANUFACTURING JOBS While China’s official unemployment rate has remained steady, signs have emerged that sluggish domestic demand and trade friction with the United States have triggered increased layoffs in the country’s manufacturing sector. An employment-tracking component of the Purchasing Manager’s Index (PMI) – a snapshot of conditions in the sector – has been trending sharply lower since last year. The August reading slipped below 47 for the first time sin
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