China factory activity slows, adding to economic strains

What ol' Jack Burton always saysToday 11:04 am JST

And if you believe this you will believe anything

Yes, China's rise is inevitable (as is it's aging out into middle income).

Pathetic west near recession.. Lol..

And yet, their GDPs are still growing

Read an article earlier this evening that stated that Chinese production in May had unexpectedly risen, not fallen. I guess we will just have to wait and see.

Read an article earlier this evening that stated that Chinese production in May had unexpectedly risen, not fallen. I guess we will just have to wait and see.

This was issued by the Chinese agency itself:

"The monthly Purchasing Managers' Index issued by the national statistics agency and an industry group retreated to 48.4 from April's 49.2 on a 100-point scale. Numbers below 50 show activity declining."

(If ya don't want to believe them, it's understandable)

But it's not just the manufacturing. Real estate, youth unemployment, deflation, etc. have gotten worse:

World Socialist Web Site: "Significant signs of slowdown in Chinese economy"

https://www.wsws.org/en/articles/2023/05/18/jzyi-m18.html

When China scrapped its zero-COVID policy at the end of last year under pressure from the major powers and global corporations, they anticipated its economy would sharply rebound providing an impetus to global growth. The latest Chinese economic data reveal that is not taking place.

Figures released earlier this week showed that both industrial output and consumer spending were well short of expectations.

One of the most significant figures was the rise in youth unemployment. For those aged between 16 and 24 it hit a new record of 20.4 percent, surpassing the previous record of 19.9 percent last summer.

The rise in youth unemployment—and what this indicates for the future—is clearly of concern for the government of Xi Jinping because it bases its political legitimacy on the assertion that it will continue to ensure economic growth and rising living standards.

In contrast to the situation in many other parts of the world, China’s consumer prices rose by only 0.1 percent in the year to April, the lowest increase since February 2021. Producer prices have also fallen for seven consecutive months, giving rise to concerns that a deflationary environment could be setting in.

According to a report in the South China Morning Post (SCMP), deflation worries have “deepened as seven provinces and major cities, including Shanghai, Henan, Liaoning and Shanxi, reported year-on-year contractions in consumer prices last month.”

The property market and real estate development, which have been key drivers of the Chinese economy for more than a decade, are also an area of concern. Property investment was down 6.2 percent for the year so far, worse than the expectation of a 5.7 percent fall.

The longer-term trend is also down. According to calculations by Bloomberg, while property sales rose by 13.2 percent year-on-year to April, investment in the sector contracted by 16.2 percent for the year and construction of new homes continued to fall.

The worsening situation was more clearly reflected in the falls in imports, which to a great extent comprise components and raw materials for future Chinese production. They shrank by 7.9 percent, worse than expected

Pathetic west near recession.. Lol..

And yet we're not reduced to pushing a black is white narrative.

Imagine how bad it must be outside China?! China's recent inflation print only approx. 1%, retail sales up almost 19% etc.= 18% real increase in retails sales.

EU, Japan, US, etc., Very High Inflation compared to historical norms, especially EU and retail spending all strongly negative on inflation-adjusted basis.

Only thing keeping recession officially at bay in West is massive Govt. spending but winding down due to elevated inflation. Chinese Govt. spending increasing with GDP growth expected to top 5% this year, while EU, US and Japan struggle with Stagflation setting in.

No Surprise China's export of manufactured goods slowing, West's in private sector recession!

China's GDP still growing..

Pathetic west near recession.. Lol..

GO CHINA!!!..