China economic slowdown sparks debate over what caused the slump, and is it impacting on the office imaging sector?
China’s National Bureau of Statistics (NBS) reports that industrial profits fell two percent in August, year-on-year, to ¥517.8 billion yuan (£58.9/$ 72.49/€ 66.36 billion) against a July report that profits had risen by 2.6 percent in July and indicates that China’s factory sector is struggling under the weight of US tariffs.
The NBS also reported that industrial profits in January-August have fallen 1.7 percent to just over four trillion yuan ($560 billion/€513 billion).
This comes a week after the Guardian reported Chinese factory output growth hit a 17-year low, and fuels concerns that the global economy is weak.
In the office imaging sector, the January to June export shipment figures were up 12 percent on the same period last year, while the overall shipments to the US were flat compared to the same period in 2018.
“How much of the slowdown is the fault of the US trade war is hard to tell at this stage”, said David Connett, Partner at Connett & Unland GbR, adding “we are seeing a growth in exports from some companies, but at the expense of others. An indication that companies are adapting their business models to match the market changes. Medium-term it will be hard for the Chinese imaging sector to maintain sector growth because of the slowing of the global economy and a year on year decline in printing. Indicators of more consolidation within the sector.”
