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One measure of China’s economy suggests it is shrinking. China’s GDP continues to look stronger than most countries, at 6.9%, but that’s down from last year’s 7.3%; and the measure lacks credibility outside of China because the way its calculated lacks visibility. The measure more closer tied to production is the Purchasing Manager’s Index, which fell to 49.6. A PMI of less than 50 represents a shrinkage. China’s demand for commodities is also shrinking, which has partly accounted for a global drop in commodity prices. Considering the asset flight as China’s wealthy purchase foreign assets like real estate, there are several suggestions that one of the strongest economies that has been supporting the world’s economy is having trouble.

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2 thoughts on “Chinese Productivity Shrinking

  1. Pingback: Data That Matters December 2015 | Pretending Not To Panic

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