The New York-based China Beige Book International have released their quarterly report, which is modeled on the U.S. Federal Reserve’s Beige Book business survey, showing China’s economy slowed this quarter as growth in manufacturing and transportation weakened. This is in stark contrast with official signs of an expansionary pickup.
- The report is based on responses from 2,000 people from August 12 to September 4 and also on “32 in-depth interviews conducted later in September”
The data “reveal weakening gains in profits, revenues, wages, employment and prices, all showing slipping growth on-quarter — no disaster, but certainly not the powerful expansion suggested by the consensus narrative.”
- 47% of manufacturers reported revenue gains, down 6% from the second-quarter survey
- Growth in export orders was “stable” for the U.S. and Europe and “off a bit” in Asia and developing nations outside of Asia
- In transportation, including shippers, 51% said revenue rose, down 18%
- 53% of a broader sample of businesses said investment rose, a 4% decline
- Service revenue rose for 57% percent of respondents, up 3%
More details: China Beige Book Shows Slowdown, Opposite Official Data