Factory Slump Puts China on Verge of Recession

Ahhhh , How Awful!,China might have to Apply the brakes a little on their manufacturing Blitz that has taken JOB after JOB , from America !
I can't say that it bothers me one bit ,I personally have not had a job back home in almost a year due to China's "Cutting the throats of American Manufacturing" now more than ever Is a perfect time to NOT BUY CHINESE GOODS!!!!!Paybacks are a BITCH!!

China news
Anyone who was looking for China somehow miraculously to save the world economy is going to be terribly discouraged by the latest signs of a economic slowdown in the Middle Kingdom. The CLSA China Manufacturers Purchasing Managers Index (PMI) showed that factory activity contracted sharply during October, with the index falling to its lowest level since the surveys began in June 2004.

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Based on monthly questionnaires sent to 400 Chinese manufacturers asked to give month-on-month comparisons, the survey is widely considered one of the most robust leading indicators in China, where economic data are often suspect. The PMI is also important because manufacturing accounts for about 42% of China's gross domestic product. A rating of 50 is the cutoff for expansion/contraction. In October it registered 45.2, down from 47.7 in September. "Chinese manufacturers are seeing their order books cut, both at home and abroad, as the world economy falls into recession," Eric Fishwick, head of economic research at Hong Kong-based CLSA said with the release of the report. "The coming 12 months will be difficult for manufacturers, China included."

The growing signs of slowdown (BusinessWeek.com, 10/29/08) are manifold. In Guangdong province, traditionally the center of China's light industry, nearly half the toy manufacturers have gone out of business. Some have moved to cheaper locations inland, but others have disappeared altogether, often leaving workers with several weeks of unpaid wages. On Oct. 16, Hong Kong-owned Smart Union Toy left 6,000 workers in the southern city of Dongguan in the lurch after it closed without warning. The government may now have to compensate workers from Smart Union, which produced toys for Mattel (MAT) and Walt Disney (DIS), for unpaid wages.

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