Monday, July 05, 2010

More on the slowdown in China

by Bill McBride on 7/05/2010 03:58:00 PM

Just a follow up to the previous posts on oil prices and the 2nd half slowdown ...

From Bloomberg: China Car Sales Grow at Slower Pace; Services Index Slides to 15-Month Low (ht Paulo)

China’s auto sales grew at a slower pace in June and a services-industry index slid to a 15-month low, adding to signs that the economy leading the world recovery is cooling.

Passenger-car purchases rose 10.9 percent from a year earlier, down from May’s 25 percent gain, the China Automotive Technology & Research Center said today. The services-industry measure fell to 55.6 from 56.4, HSBC Holdings Plc and Markit Economics said in an e-mailed statement.
Slowing in China is just one of the 2nd half stories - there is also less stimulus spending, state and local government cutbacks, more household saving impacting consumption, another downturn in housing, and a slowdown and financial issues in Europe.

On the flip side, Yahoo had a headline this morning: 8 Problems That Could Trigger a Double-Dip Recession (ht Brian). Brian joked that this might be a new contrary indicator (like the old magazine cover indicator).