Chinese data ‘points to a slowdown’

<p>The Chinese economy could be set for a slowdown.</p>

New economic data from China indicates that the Asian nation's economy could be heading for a slowdown unless things pick up in the coming weeks and months.

According to Schroders' chief economist Keith Wade, a dangerous stagflationary environment is also evident in the other BRIC nations, Brazil, India and Russia.

He pointed out that Schroders has cut its 2013 growth outlook for China to 7.4 per cent from 7.8 per cent on the back of the weaker data coming out of the country.

Growth was previously expected to hit eight per cent next year, but the organisation has decided to cut this figure as well, to 7.6 per cent.

Schroders also downgraded its growth outlook for Brazil to 1.9 per cent in 2013 and 2.1 per cent in 2014, while reducing its 2013 growth forecast for India from 6.1 per cent to five per cent.

It was recently revealed by the Markit/Chartered Institute of Purchasing and Supply purchasing managers' index that Chinese manufacturing rose to record a figure of 51 in August from 50.3 in July, indicating that the industry expanded slightly in the last few weeks.

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