According to yesterday's official data from China it is reported, that country is now in a serious state of recession at the end of this year. Such a scenario causes the fears of new disturbances of prices on market of raw materials with the prospect of doing damage to British industry. China's manufacturing industry reduces the rates of work for the third month in a row, in turn, the service sector shows a slow, but steady growth since the beginning of 2008, during the crisis.
Indicators claim that China will not surpass the level of expectations of 7% targeted growth, that was set after 6.9% in the third quarter. British reviews demonstrate the potential instability of currency and raw material prices. The slowdown of growth in developing markets is also one of the main threats to British companies. The highest rates of decline show export orders for small businesses over the last six years.
At the moment, prices of raw materials are at record low levels since 2001. However, they may fall even lower in the event that traders, according to means of the latest data from China, will assume the new signs of a slowdown of demand the second largest economy in the world. Chinese crisis is putting intense pressure on markets of metals and oil. Glencore Corporation hopes ride out the storm by changing its own business strategy. However, the Bureau of Statistics of China yesterday was not be able to reassure markets on a speedy recovery. The manufacturing sector showed a level of 49.8, this indicator is obviously lower than 50, which ultimately points to a decrease for the third month in a row. Forecasts of experts pointed to a figure above 50, the markets were expecting for an extremely long-awaited recovery.