26 June 2012
Chinese manufacturing “boom is over” – Eversheds
Manufacturing in China is facing challenges, falling foul of "a chill wind" of economic reality, according to experts at international law firm Eversheds.
HSBC manufacturing Purchasing Managers' Index (PMI) data reveals that China's manufacturing sector contracted at the fastest rate in seven months in June. The index fell to 48.1 in June from 48.8 in May, with anything less than 50 signalling a contraction.
Eversheds partner Nicholas Emmerson believes that China is slowing as it manufactures what the world demands. He ventures: "As the rich West has stopped buying, it will inevitably affect China. China will maintain respectable levels of growth compared to the West as domestic demand is, at the moment, still strong. Rapid urbanisation in China means that people aspire to own cars and white goods and they are still shopping. However, the boom is over and a chill wind is beginning to blow across the region."
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