BREAKING NEWS Gov. Ivey extends Alabama’s health order, mandatory masking to Nov. 8 Full Story
STREAMING NOW: Watch Now

The trade war is deepening the gloom at Chinese factories

Chinese factories are losing export orders and laying off workers as the trade war with the United States ex...

Posted: Sep 3, 2018 1:10 PM
Updated: Sep 3, 2018 1:10 PM

Chinese factories are losing export orders and laying off workers as the trade war with the United States exacerbates an economic slowdown that started earlier this year.

Growth in output from China's huge manufacturing sector slumped last month to its lowest level in more than a year, according to the results of a survey of hundreds of companies published Monday.

The latest purchasing managers index survey, conducted by media group Caixin and research firm Markit, fell to 50.6 in August from 50.8 in July. Any reading above 50 indicates growth, but August showed the slowest rate of acceleration in 14 months.

China is one of the world's fastest growing major economies, but it has begun to slow down this year, and signs of further weakness are spreading.

"China's economy is now facing relatively obvious downward pressure," Zhengsheng Zhong, a senior analyst at research firm CEBM Group, said in comments accompanying the release of the survey Monday.

Chinese factories' export orders slumped for the fifth month in row, according to the data. The decline in orders has coincided with the escalation of trade hostilities with the United States, which began in earnest in late March.

The trade war is weighing on "overall sentiment," according to the Caixin-Markit survey for August, which was sent to more than 500 companies.

The United States and China have imposed tariffs on more than $50 billion of each other's goods, and are threatening far more.

The Trump administration could move ahead with 25% tariffs on an additional $200 billion worth of Chinese exports as early as this week, when a public consultation period ends. China has pledged to retaliate with tariffs on $60 billion worth of American exports.

The Chinese government has plenty of other economic challenges to deal with. The manufacturing sector is also suffering from slowing investment in infrastructure and dwindling credit growth, according to analysts.

Beijing has been trying to crack down on riskier lending following repeated warnings about the unusually high level of debt owed by Chinese companies.

China's stock market and its currency have been pummeled by investors concerned about the health of the country's economy.

Chinese officials have been looking for ways to prop up growth, including tax cuts, infrastructure spending and looser monetary policy. That could help cushion the slowdown, analysts say, but an imminent turnaround in the economy looks unlikely.

"Growth will probably remain on a downward trajectory well into next year," Julian Evans-Pritchard, senior China economist at research firm Capital Economics, wrote in a note to clients Monday.

The Chinese government's official manufacturing PMI reading, which was published Friday, showed a slight improvement in August. But the Caixin-Markit index, which focuses on smaller firms, "is generally a better guide to cyclical trends" in the economy, Evans-Pritchard said.

Huntsville
Clear
68° wxIcon
Hi: 76° Lo: 52°
Feels Like: 68°
Florence
Clear
72° wxIcon
Hi: 78° Lo: 55°
Feels Like: 72°
Fayetteville
Clear
68° wxIcon
Hi: 75° Lo: 51°
Feels Like: 68°
Decatur
Clear
69° wxIcon
Hi: 75° Lo: 53°
Feels Like: 69°
Scottsboro
Clear
66° wxIcon
Hi: 76° Lo: 53°
Feels Like: 66°
WAAY Radar
WAAY WAAY-TV Cam
WAAY Temperatures

Alabama Coronavirus Cases

Confirmed Cases: 137564

Reported Deaths: 2399
CountyConfirmedDeaths
Jefferson19938351
Mobile13507293
Montgomery8866185
Tuscaloosa8837118
Madison798179
Shelby607449
Lee597161
Baldwin560650
Marshall397543
Calhoun355644
Etowah354845
Morgan333428
Houston293921
Elmore271948
DeKalb244321
St. Clair235936
Walker235485
Talladega217830
Limestone214420
Cullman191920
Dallas179826
Franklin179130
Autauga178727
Russell17683
Lauderdale175133
Colbert167726
Blount162115
Escambia161624
Jackson159712
Chilton159530
Covington140727
Dale140344
Coffee13716
Pike121611
Chambers117542
Tallapoosa117185
Clarke110316
Marion97529
Butler91740
Barbour8867
Winston75013
Marengo72620
Pickens67014
Randolph66613
Lowndes65927
Bibb65810
Hale64928
Geneva6444
Lawrence63425
Cherokee61713
Bullock60714
Clay5918
Monroe5908
Washington56012
Crenshaw54332
Perry5426
Conecuh53911
Wilcox53211
Henry5105
Macon48318
Fayette4689
Sumter43719
Cleburne3945
Lamar3822
Choctaw35112
Greene30515
Coosa1743
Out of AL00
Unassigned00

Tennessee Coronavirus Cases

Confirmed Cases: 194611

Reported Deaths: 2420
CountyConfirmedDeaths
Shelby31097466
Davidson26797311
Hamilton963495
Knox960579
Rutherford945290
Williamson536636
Sumner489598
Wilson356247
Putnam336541
Montgomery313344
Unassigned30444
Madison299265
Out of TN297727
Bradley297217
Sevier266415
Blount256324
Maury242725
Washington235538
Robertson223939
Sullivan223133
Hamblen194828
Tipton184519
Gibson172624
Trousdale16697
Hardeman158426
Wayne15015
Dyer142017
Bedford137317
Dickson128015
Coffee127713
Fayette122719
Cumberland121919
Weakley121620
Anderson121013
Obion120211
Loudon11996
Henderson119125
Carter118028
Greene116946
McMinn116325
Jefferson114414
Lawrence108913
Warren10777
Macon106721
Monroe106618
Hardin105516
Lauderdale100316
Haywood99821
Franklin99410
Lake9252
McNairy92518
Carroll91320
Roane9126
Bledsoe8624
White85510
Rhea85413
Hawkins82720
Cheatham8199
Marshall7815
Overton7706
Cocke75310
Smith74011
Johnson7323
Chester65011
Giles64417
Lincoln6331
Henry6309
Hickman6008
DeKalb57414
Marion5518
Fentress5463
Crockett54419
Decatur5347
Campbell4614
Claiborne4455
Polk40710
Grainger3943
Union3762
Benton3418
Jackson3325
Morgan3213
Grundy3176
Cannon2950
Unicoi2911
Humphreys2673
Sequatchie2441
Clay2355
Houston2343
Meigs2323
Stewart2212
Scott2192
Lewis2081
Moore1831
Van Buren1660
Perry1530
Pickett1262
Hancock1073

Community Events