Fears mount over slowing global demand…(What A Suprise, Global Fiat Currencys Going “Titantic”…Sheesh)
By Alan Beattie and James Politi in Washington, Kevin Brown in Singapore and Geoff Dyer in Beijing
July 1 2010
Fears grew that the global recovery is faltering on Thursday after a slew of data pointed to weaker global demand led by slower growth in China.
Figures showed manufacturing output slowing across large parts of the world, posing further challenges to leading economies as they attempt to shore up shaky fiscal positions without falling back into recession.
In Asia – the world’s production powerhouse whose economies are still largely dependent on export demand – manufacturing activity indices for China, South Korea, Taiwan, India and Australia all showed weaker activity for June.
The overall level of factory activity still suggested production was expanding but at a more moderate rate than in recent months.
“China’s recovery remains solid but is clearly moderating from the very fast pace set at the start of the year,” said Brian Jackson, strategist at RBC Capital Markets in Hong Kong. But he added that concerns over weaker growth might cause China to restrict appreciation in the renminbi, which has been allowed some flexibility in the past two weeks. “A slowdown in activity in the months ahead may prompt some in Beijing to argue for a halt,” he said.