Economic skies over china increasingly gloomy
The sentiment barometer calculated by the major bank HSBC and the market research institute markit fell from 49.3 points in the previous month to a revised 47.6 points. In the initial assessment, a value of 47.8 points was determined.
The data suggest that economic activity in the world’s second-largest economy continues to slow down. Meanwhile, the purchasing managers’ index remains below the 50-point mark that separates growth from contraction for the tenth month.
In china, a series of measures taken by the government in peking to boost the economy have so far met with little success, experts say. "Various moderate measures, including interest rate cuts, had not been able to offset the negative impact of the euro debt crisis on the chinese economy," said expert christian schulz of berenberg bank.
However, schulz also referred to the increasingly sharp divergence in economic development in chinese industry and in the services sector. While sentiment in the manufacturing sector has remained below the expansion threshold, it has risen further in the services sector and now stands at an index value of 56.3 points, according to the berenberg expert.
Overall, economists at VP bank in liechtenstein believe that economic growth in china will continue to weaken. In the third quarter, the world’s second-largest economy was allowed to grow less than in the second quarter of the year. Despite the recent economic slowdown, "the turnaround in china’s growth was still a long time coming in the third quarter". In any case, the most recent interest rate cuts have not yet had any effect.
