Markit’s HSBC Flash China Manufacturing Index has dropped to 49.5, with a number under 50 representing a contraction. World economists have been worried for some time that the white-hot People’s Republic, measured as number two in the world by gross domestic product (GDP), would not be able to keep growing at 7% plus. Recently the government said that a 7.1% GDP increase was the likely figure for this year.
Most of the world’s other largest economies are either in recession or tipping that way, particularly the European Union (where GDP leader Germany has struggled) and Japan.
Markit experts wrote:
- Flash China Manufacturing PMI at 49.5 in December (50.0 in November). Seven-month low.
- Flash China Manufacturing Output Index at 49.7 in December (49.6 in November). Two-month high.
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