Business activity in the industry in China fell to a six-year low – RBC

The index of business activity (PMI) in the industrial sector Caixin China fell for the first three weeks of August to 47.1 from 47.8 in July, indicating that the acceleration of the recession, writes Financial Times. The last time the index was at such a low level in early 2009, during the global financial crisis.

The level of PMI above 50 indicates an increase in production volumes, and lower than 50 – for their reduction.

China’s stock market on Friday resumed falling. The index of the Shanghai Stock Exchange fell by 4.3%, while the Shenzhen B – on 3,8%.

The consumption also shows signs of weakening, says FT. According to research group IDC and Gartner, sales of smartphones in the Chinese market began to fall for the first time on record. According to the China Association of Automobile Manufacturers, in June, wholesale sales of cars fell by 3.4% year on year, which was the first time since 2013.

Another sign of weakening consumer demand, writes the FT, was the slowdown in retail sales . In July, they rose by 10.5% year on year, which was almost the minimum figure for the last decade.

The newspaper reminds that the Chinese leadership in a slowing economy has stated that it intends to pay more attention to consumption and services rather than investment in production and infrastructure as previously.

According to the economist Julian Evans-Pritchard of Capital Economics, despite concerns growth of the Chinese economy, the prevailing sentiment is too pessimistic. He believes that political support will limit the risks of economic decline in the next two quarters.