Tuesday, December 16, 2008

China Industrial Output Falls More Than Expected

This is a significant headline, since many had considered China's industrial engine to continue to fuel global economic growth. I always thought this was a silly argument given that China has built its economy on exports. Without those exports, where will the growth come from? Despite the economic stimulus of the Chinese government and their focus on building infrastructure, I don't see that alone as being enough to power global economic growth, except for some construction, infrastructure, and limited commodities companies. Still, any economic stimulus is welcome relief during tough times.