Top
Commentary

The situation in China, whatever it may be, is relatively stable

23 Oct 2013 by Jim Fickett.

It is very hard to tell what the situation in China really is. The Purchasing Manager Index indicates stagnation, while the government index of industrial production indicates about 10% annual growth. It is unlikely both things are true. But whatever the situation really is, it would seem that it is not changing very much at present. For the rest of the world, the most important implication is that commodity demand is likely to remain fairly stable for a while. I still think a major slowdown in China is likely in the long run, but it is impossible to tell when that may come.