Economics
Smaller Companies Feel the Chill of China's Great Deleveraging
- PMI for small manufacturers slump to indicate deterioration
- "Conditions for them will be even harder next year": Mizuho
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As China’s great deleveraging kicks in, smaller companies appear to be already feeling the squeeze, judging by the latest factory gauge.
The manufacturing purchasing managers index pulled back slightly to 51.4 in July, propped up by improved sentiment among large firms. That masked a marked deterioration among small companies, with a sub gauge for them slumping to 48.9 from 50.1 in June, and a drop in mid-sized firms back below 50. Numbers under 50 indicate conditions are deteriorating.