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China’s PMI Shrinks

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By Douglas A. McIntyre Published
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China’s PMI shrank for the first time in nearly three years.

According to Reuters, demand for goods in both China and overseas was week. The news service writes that

The official PMI released by the China Federation of Logistics and Purchasing (CFLP) fell to 49 in November from October’s 50.4, suggesting activity among big manufacturers shrank in November

The surprise about the news was not the drop in demand from overseas. That has been widely expected because of slow growth in most of China’s largest trade partners. This is particularly true in the largest economy by GDP–the EU, which has become recession plagued due to austerity programs which have sapped government stimulus and double digit unemployment.

The drop in demand for manufactured good by Chinese consumers is much more dire. The Chinese middle class, made up primarily of factory workers, is supposed to creat a huge consumer demand engine like the one created in the US in the 1950s and 1960s. The fall off in factory activity may have started to undermine China consumer activity.

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About the Author Douglas A. McIntyre →

Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.

McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.

His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.

A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.

TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.

McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.

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