In the news tonight are two unwelcome items of note. In the first, China has reported its first month of contraction for manufacturing since February 2009, four months before the official end of the U.S. recession. In the second announcement, India reported GDP growth for the quarter ending September at 6.9%. India also had not had a quarter below 7% since the end of The Great Recession.
From GEI News:
Just when there appears to be improved chances for the U.S. to avoid recession, the growth engine of the world, Asia, is slowing down. And, of course, we know that the austerity in Europe will not be creating any significant growth soon.... the economy grew 6.9% in the September quarter, slower than 8.4% in the same year-ago quarter and 7.7% expansion in the April-June quarter. Separate data showed the key infrastructure sector slowed to a 5-year low at 0.1% in October piling more pressure on the government and policymakers.
Deleveraging from a credit bubble is beginning to feel like waterboarding.