China may be in a slump, according to end of the year figures, raising fears that could influence the global commodity prices and damage British industry. China’s manufacturing sector showed a decline for the third consecutive month in October. Their service sector grew, but at the slowest pace that it has had since 2008’s financial crisis.
The expectations for the manufacturing sector was that the reading would be set at 50, while the actual number was 49.8, below the 50 mark which separates contraction from expansion.
As economists at ANZ Bank said, “As deflation risks intensify, a further RRR cut [the reserves a bank must hold against lending] before the end of this year is still possible.”