China’s economic climate gloomiest for years

According to the dpa an important early indicator for the Chinese economy has fallen to its lowest level for six years. The purchasing managers’ index (PMI) in the processing industries,.............

which measures the mood in the top management of production companies, fell from 47.3 to 47 points in September.

This has been reported in the Chinese business magazine Caixin in a preliminary assessment and means that the index has fallen to its lowest level since March 2009.

On average analysts had expected a figure of 47.5 points. Values ranging over the critical limit of 50 points indicate a positive mood in the economy, while below it a recession is to be expected.

Prior to these surprisingly weak economic data China’s president Xi Jinping had continued to draw a positive picture of the economic trend, saying that the economy lay in a reasonable range and that the world’s second-largest economy had come under pressure in the last few months. He went on to point out that this was to be expected due to the “complex” and “volatile” global economic situation.