Sun, Jun 10, 2012 - Page 11 News List

China figures cast global shadow

GROWING PAINS:Key statistics measuring the country’s industrial output and retail sales have shown the global growth slowdown is impacting the rising Asian nation


“China’s producers are seeing sharp deflation, pointing to a worrying lack of final demand,” said Alastair Thornton, a Beijing-based economist with IHS Global Insight.

The decline in prices, combined with the “sharp” drop in the prices gauge in last month’s purchasing managers’ index “points to considerable sluggishness in domestic manufacturing activity” and should “act as a spur for the government to move more aggressively,” he said.

Anhui Conch Cement Co (安徽海螺水泥), the nation’s biggest cement producer, warned last week that its first-half profit probably fell more than 50 percent as prices of its products “dropped significantly” due to slower growth in fixed-asset investment.

China’s economy expanded 8.1 percent in the first three months from a year earlier, the fifth quarterly deceleration and the slowest pace in almost three years. Growth may slide to 7 percent or “slightly below” this quarter, Credit Suisse Group AG estimated last month, while Citigroup Inc. forecasts a 7.5 percent pace.

This story has been viewed 2902 times.

Comments will be moderated. Remarks containing abusive and obscene language, personal attacks of any kind or promotion will be removed and the user banned.

TOP top