CHB - China May Enter Recession For The First Time In Nearly 30 Years
- Many economists now expect China to fall into recession for the first time in nearly 30 years as Evergrande Group continues to miss interest payments on its bonds.
- Another sign of looming recession in China is that their National Bureau of Statistics reported Thursday that its purchasing managers index declined to 49.6 in September (any reading below 50 signals a contraction), down from 50.1 in August.
- As a result of high energy prices and fixed lower prices, electricity rationing is now common, and that is apparently curtailing production. In some parts of China, they are also striving to curb energy consumption to reduce carbon emissions to ameliorate their choking air pollution.
- Normally, European countries would be stocking up on natural gasreserves in the fall as winter approaches, but high spot prices have causedmuch of their reserves to be largely depleted. It’ll be interesting to seewhere natural gas price end up if we have a cold winter in both Europe and theU.S.
For further details see:
China May Enter Recession For The First Time In Nearly 30 Years