China's manufacturing contracted as the worst financial crisis since the Great Depression eroded export demand.
The Purchasing Managers' Index fell to a seasonally adjusted 44.6 last month from 51.2 in September, the China Federation of Logistics and Purchasing said today in an e-mailed statement. That was the lowest since the gauge was launched in July 2005. A reading below 50 reflects a contraction, above 50 an expansion.
Note: This is not a slowdown from 10% growth to 9% growth. This is outright contraction.
Fortunately for China, they have over $1 Trillion accumulated from the US trade surplus that can be spent on an internal Keynesian stimulus program.
The US, not so much.