China heads for a hard landing

China’s economy is starting to sputter. Manufacturing is shrinking, growth in services has all but halted, and the property bubble is bursting. There will be no soft landing for China.

China's engine is starting to sputter, says Keith Bradsher in The New York Times. A survey of Chinese purchasing managers in the manufacturing sector, by HSBC and Markit Economics, has now been pointing to marginally shrinking activity for three successive months. Its service sector equivalent is barely expanding.

Air is also hissing out of the property bubble. Between July and August, prices in more than half the 70 biggest cities were flat, or fell. In some areas, price- to-income ratios had reached extreme highs of more than 20. Consumption is easing too. Family vehicle sales in August were still up by 6% year-on-year last month, but that follows years of double-digit growth.

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