China’s industry is weakening – exchanges continued in descent – Reuters Germany

– Koh Gui Qing and Rene Wagner

Beijing / Berlin (Reuters) – China will send new shockwaves across the global economy: The business of the industry ran in August as bad as the last six and a half years no longer.

The fear of a decline in growth of the second largest after the United States economy was around the world slump, stock prices again. Even oil prices were down significantly. Unsettled show the German consumers. Their buying mood is currently as bad as the last six months is no longer, as they expect a weaker economy in Germany.

The Purchasing Managers’ Index for the Chinese industry fell surprisingly by 0.7 to 47.1 points, the Markit Institute said on Friday its monthly business survey. That left the barometer the sixth consecutive month below the threshold of 50 points, from which a growth is signaled. “The government has expected an upturn in the second half, but it looks like the opposite,” said economist Chester Liaw from research firm Forecast Pte in Singapore. “The economy is likely to continue to weaken.” The company produced as little as four years no longer, while orders shrank both from home and abroad. Therefore, painted bodies. Many markets of the world export champion falter, including emerging markets such as Russia and Brazil. “The data renewed doubts about the global recovery,” said economist Tim Condon of ING Bank.

Investors fear a hard landing of the Chinese economy. In Frankfurt the DAX benchmark index slipped to its lowest level in seven months. In Tokyo, the Nikkei index closed 2.98 percent lower, in Shanghai, the stock market was at times more than four percent. Even oil prices fell because China is the world’s largest energy consumer. “The markets have prices now the worst one,” Herald said Mr van der Linde, chief strategist for Asian equities at HSBC.

” GERMAN ECONOMY TURNED up a gear “

The buying mood of the German clouded the face of rising economic risks in China. The People’s Republic has become the fourth largest customer for German goods. The barometer of consumer sentiment in September falling by 0.2 to 9.9 points, such as the Society for Consumer Research (GfK) found during its survey of 2000 consumers. This is the worst value for half a year. The main reason: Consumers rated the economic outlook for the third month in a row bad. “The Grexit-consumer concerns may have been replaced seamlessly by concerns about the Chinese economy,” said BayernLB analyst Stefan Kipar.

In the German economy, the China-weakness is so far not yet arrived, because they can be found on other markets Annual growth. The purchasing managers’ index for the German private sector rose in August by 0.3 to 54.0 points. That is the highest figure in four months. “The German economy has shifted up a gear,” said Markit economist Oliver Kolodseike. So you will no longer put as many employees as one since the late 2011th The partial barometer of the industry even climbed to the highest level in nearly a half years. “In the industrial sector laid the foreign orders from many countries, including Britain and the United States, even as strongly as last year and a half ago,” said Markit. The weak euro, which cheapened goods overseas is likely to have helped.

For the German carmaker, however, the world’s largest car market is changing from a blessing to a curse , In July, sales in China declined after years of boom, according to industry association CAAM by 7.1 percent to 1.5 million vehicles. Prices are in descent. Represents the Volkswagen Group a great deal at stake, for the Wolfsburg-based drive in the People’s Republic of a large part of the profit. VW and Audi subsidiary, in China the undisputed top dog in the luxury segment, a deposited their sales targets. BMW in China slowed production.

The Beijing government aims this year a growth rate of seven per cent , It would be the smallest increase since a quarter century. Recently both the industrial production as well as the investment and retail sales grew less than expected. The central bank is trying to counteract: You had to devalue the national currency Yuan vigorously, making Chinese goods cheaper abroad. Since 11 August, the price declined by three per cent against the dollar after.

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