What Does Dismal US Jobs Report Mean for China

Monday, December 8, 2008 3:37
Posted in category Uncategorized

The recent jobs report literally rocked the house on Friday as a reported 533,000 jobs were lost in November.

Particularly noteworthy on Larry King Live, and concerning to me, was that for the first time ever retail jobs were lost in November.  A time that retailers are typically bulking up for the Christmas season.  Which was matched by a report from the International Council of Shopping Centers’ that:

same-store sales index fell 2.7 percent in November from the same month last year. That was the largest drop since the council started tracking the data in 1969.

With China’s economy driving a large amount of income from providing large retailers, and producing many of the consumer items that Americans buy outside of the Christmas season, it begs the questions…

1) What China specific conclusions should be drawn from this report?
2) Are the economic ripples set to get larger?
3) What are the likely actions Beijing will take to cushion its economic exposure?
4) How long can China sustain its current model absent a freak US rebound?
5) Does anyone really believe that Chinese consumers will take up the slack, or is this a US administration pipe dream?

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2 Responses to “What Does Dismal US Jobs Report Mean for China”

  1. Paul says:

    December 8th, 2008 at 7:05 am

    I believe it raises the question, rather than begs the question.

  2. ian channing says:

    December 9th, 2008 at 2:12 am

    Is not possible that lower spending power in the west might actually benefit China, as shoppers desert the high end in retail markets? Here in Britain, the one-pound shops full of Chinese stuff and discount supermarkets are almost the only retailers doing well at the moment.