Economy Talk

China exports +16%, retail 1.1%. Europe should be more worried than it is

Reading the GONOM post on China's Q3: exports up more than 16% in three quarters, retail sales up just 1.1% in September, investment down 7.2%.

If Chinese households aren't buying, those factories need customers somewhere else. That's us. As an accountant in Milan I see small manufacturers already complaining about competition on price.

I'm skeptical of the "great news, growth beat forecasts" angle. For a European exporter, a China that produces a lot and consumes little isn't great news. Am I being too pessimistic?