About That Global Economic Recovery …… China’s Industrial Output Down Sharply

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Well, for China, we all knew it was happening.

China’s industrial output slows to 6.9 percent

BEIJING (AP) — China’s factory output in August slowed to 6.9 percent from a year earlier amid waning export demand and a slump in real estate development that has undermined steel and cement production, according to data released by the National Bureau of Statistics.

The growth rate for industrial production in August was down sharply from 9.0 percent in July.

In other data, fixed assets investment in non-rural areas of China rose 16.5 percent in the January-August period compared with the same period a year earlier.

Industrial production was slowing amid weaker exports to major markets in Japan, Europe and the United States and the saturation of China’s domestic markets for vehicles and mobile phones after years of rapid growth, the bureau of statistics said.

The cooler summer months this year in eastern China, one of the country’s most economically active areas, also helped cut the national electricity production by 2.2 percent in August, the first time power production decreased since 2009, the bureau said.

Cool or not, lower electricity production doesn’t bode well for China, and suggests they’ve hit a wall in modernization and growth. 

This is the problem with being wholly reliant upon exports for one’s economic health……. it doesn’t work if no one else is growing.

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4 Responses to About That Global Economic Recovery …… China’s Industrial Output Down Sharply

  1. Bruce of Newcastle says:

    US, EU and even Brazil are in economic black holes, and China makes the stuff they buy.

    So China is in a black hole too. And we Aussies are hit because the prices of iron ore and coal are down heavily. Coal mines have been shutting around my town because of the low prices.

    Only good thing is oil price is down too, despite the ISIS kiddies, which means that such worthy states as Saudi, Venezuela and Russia are suffering. Couldn’t happen to a nicer bunch of horrible people.

    • DirkH says:

      So there’s a higher and higher money supply, while less and less money is needed to buy the stuff one needs…
      and company valuations in USA and EU are at record values while nobody is buying their stuff…

      Somehow this doesn’t look like a stable situation.

    • suyts says:

      No, Dirk, it doesn’t look very stable.

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