China: Implications of Potential Manufacturing Slowdown

Indications of a slowdown in China's manufacturing have appeared, according to a brief report issued by the China Federation of Logistics and Purchasing on Aug. 1. According to the report, the Purchasing Managers' Index fell to a seasonally adjusted 48.4, down from 52 a month earlier and the first time it has fallen below 50 since reports began in 2005. While a separate report by the federation issued the same day offered a contradictory view, actions in Beijing indicate that concern is already high for a dip in the Chinese economy — and for the implications that may have on the domestic social situation.