Manufacturing Slows in China

[Coventina]

Source: Wall Street Journal

BEIJING -- Two key gauges of manufacturing in China fell to record lows in November, signaling the country's economic growth will likely slow further in coming months before getting a boost from the government's pro-growth policies.

The China Federation of Logistics and Purchasing said Monday its Purchasing Managers Index for China fell to the lowest level since the index started in 2005. The November PMI was 38.8, down from 44.6 in October.

CLSA Asia-Pacific Markets said its PMI plunged to the lowest level since the index started in 2004, registering 40.9 in November compared with 45.2 in October.

A PMI reading above 50.0 indicates the manufacturing economy is expanding. A reading below 50 indicates contraction.



Read more: http://online.wsj.com/article/SB122813541628968749.html?mod=googlenews_wsj

[OhioChick]

1. Their biggest consumers

Don't have jobs.

[slackmaster]

3. And many of us who do have jobs are intentionally holding back on major purchases

I am thinking about sinking about $3K into a Chinese-made engine lathe, but I'm gun-shy about committing the money right now.

Maybe after New Year's.

[HopeHoops]

8. Or you could just buy a REAL one!

[slackmaster]

10. I have some experience with used machine tools

I don't want to go that route on a lathe. A decent used US-made one would cost about twice what I can get a new Chinese one for. I wish I could do that, but I don't have the money.

[hendo]

2. Yup, this has been a long time comming

I blame OPEC, and wallstreet greed.

[xchrom]

4. it'll be interesting to watch these stats over the next few months. nt

[Javaman]

5. we buy less shit, they make less shit.

living in a shit storm.

[Veruca Salt]

6. And the shit I buy isn't made in China if I can help it.

Which is surprisingly easy to do. I'd rather pay more for quality.

[Javaman]

9. exactly.

however, in the bizarro times we live in now, people want it now rather than want something made well and will last, so the ever revolving door of shit merchandise continues unabated. :(

[OhioChick]

11. Same here. n/t

[slackmaster]

12. It depends on what your needs are - one example

About three years ago I bought a power auger, a drain cleaning machine, from Harbor Freight Tools. The total came to under $200 including California sales tax.

That machine has already paid for itself about twice, compared to renting one when I need it. That used to be about $25 for one day. When I found out the cost had gone up to $40 (including damage waiver which IMO you would be a fool not to buy on something like that), I decided that buying my own made sense.

Or to put it another way, the cost of the tool was about the same as having The Man come out for an emergency cleanout once.

Sure, I'd love to be able to pay out the bucks for a nice Rigid consumer-grade one (a comparable one is going for $639.99 from places like NorthernTool), but I guess patriotism isn't worth that much to me. I would also not be surprised to learn that a lot of the "US made" tools like that have Chinese or other foreign components. Of course a "real" i.e. professional quality one would cost a whole lot more than that.

[HopeHoops]

7. GASP! WalMart scaled back its orders?

[Vinca]

13. Our jobs were outsourced to China which has left us with no money

to buy the cheap crap they ship back. Someone didn't think this one through all the way.

[KillCapitalism]

14. They better find a new buyer for their cheap shit quickly.

Rising unemployment will be something that their government will not want to deal with.

It's a recipe for massive civil unrest.

[unkachuck]

15. China needs to develop....

....a larger consumer base of their own as an internal cushion against market swings....but their Socialist Market Economy has produced almost 10% yearly growth for 30 years....

....since their industries compete in the global market place, they're exposed to the upside and downside of current capitalism....they have real economic and political opportunities here with global ramifications....whichever economic structure weathers this protracted capitalist-induced depression the best will shine as the worlds new economic model....

....we won't have to abolish capitalism, people around the world will walk from it....they'll throw it on the ash-heap of history alongside totalitarian Communism....thanks to hank-the-wank, we're well on our way to our own Socialist Market Economy with American characteristics....

http://en.wikipedia.org/wiki/Socialist_market_economy