The HSBS data on China’s November PMI confirms the official numbers from the People’s Republic.
The index fell to 52.5 from 54.1 in October.
“With price pressures easing further, Beijing can and should use policies that are targeted on small businesses and service sectors to keep GDP growth at above 8 percent for the coming year,” Qu Hongbin, HSBC’s chief China economist, said in a statement.
China continues to suffer from a sharp slowing of the EU economy, still the largest in the world by GDP. The US economy has only begun to pick up. There is hope that holiday shoppers will turn out in force. Early data shows that they have.
China’s own consumer class apparently has slowed its own activity. This could be because a slow manufacturing sector has decreased the rate at which compensation rises. It also could be because the Chinese have reverted to their habit of saving and not spending.
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