Executive Briefings

World Watches Chinese Economy as Its Manufacturing Continues Its Slowdown

In another sign that China's booming economy may be slowing, the country's manufacturing sector contracted in June after facing a credit crunch and seeing a decline in orders from Europe and the U.S., a survey said.

For the second straight month, the HSBC purchasing managers index for China stood below 50 points, which indicates a decline in manufacturing as export demand dropped and domestic consumption failed to make up the difference.

That decline has many countries nervously watching to see whether it will have broader implications on the global economy.

China is the world's largest exporter and the largest or second-largest trading partner for 78 countries, so any slowdown has global consequences, said Ferdinando Guerra, an economist specializing in international trade at the Los Angeles County Economic Development Corp.

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For the second straight month, the HSBC purchasing managers index for China stood below 50 points, which indicates a decline in manufacturing as export demand dropped and domestic consumption failed to make up the difference.

That decline has many countries nervously watching to see whether it will have broader implications on the global economy.

China is the world's largest exporter and the largest or second-largest trading partner for 78 countries, so any slowdown has global consequences, said Ferdinando Guerra, an economist specializing in international trade at the Los Angeles County Economic Development Corp.

Read Full Article