China's industrial sector showed a record decline in activity since 2009

Almaty. August 24. Silkroadnews - China's industrial sector showed a record decline in activity since 2009, writes the Russian newspaper "Vedomosti".
"PMI in the industrial sector of Caixin China fell for the first three weeks of August to 47.1 from 47.8 in July. The forecast of analysts surveyed by Bloomberg, was in average 48.2 points. The decline in China's economy accelerated, writes Financial Times, the manufacturing sector in August showed the highest rate of decline of activity in the last six and a half years. The level of PMI above 50 indicates an increase in activity, below - a reduction"-, says the publication.
It is noted that declined the consumption. So, in July retail sales rose by only 10.5% year on year, which was the minimum over the last 10 years. According to the China Association of Automobile Manufacturers, in June, wholesale sales of cars fell by 3.4% over the same period last year, which was the first time since 2013. And according to IDC and Gartner, sales of smartphones in the Chinese market began to fall for the first time on record.
"The weak statistics from China intensified concerns about the prospects of the economy. On Friday, the index of the Chinese stock exchanges closed in the negative zone - the Shanghai Composite Index fell by 4.3%. This week was the worst for stock markets this year. Following Chinese exchanges began to decline indexes in Europe and US, pulling down prices for raw materials", - the newspaper said.
Thus, the index of the largest European companies STOXX Europe 600 in a day fell by 3.26% (the most significant decline since November 2011), the S&P 500 fell by 2.1% - a record in February 2014. The December copper futures on the stock exchange Comex fell by 0.48%, futures for WTI crude oil for October is slightly above $ 41.
Analysts note that the slowdown in China's economy continues to be the dominant factor in the oil market. According to their forecasts, the second half of the demand for oil in China may drop significantly, but the picture for most commodity markets looks negative.
According to experts, in a slowing economy, the government of China will pay more attention for consumption, not investment in production and infrastructure, as before. At the same time, economic activity in the III quarter could fall even more. In terms of economic development for the 2016, the main direction may become focus on population policy rather than to stimulate GDP growth. Changing the policy priorities, analysts say, will increase the demand for goods and services, including consumer products, medical services and cars.