Wal-Mart warns of “contracting economy in China”

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The Chinese government continues to express firm faith in its economy’s ability to withstand the global economic crisis. And certainly its recent imports of chemicals and polymers have been a lifeline for many companies outside the country.

But now Wal-Mart, the world’s largest retailer, has reinforced the blog’s concerns about the economy. Wal-Mart reports that the “contracting economy in China is causing caution among customers, resulting in a decrease in traffic“. It also adds that “deflation in food and consumables impacted average ticket” (ie average sales per customer).

About Paul Hodges

Paul Hodges is Chairman of International eChem, trusted commercial advisers to the global chemical industry. The aim of this blog is to share ideas about the influences that may shape the chemical industry over the next 12 – 18 months. It will try to look behind today’s headlines, to understand what may happen next in important issues such oil prices, economic growth and the environment. We may also have some fun, investigating a few of the more offbeat events that take place from time to time. Please do join me and share your thoughts. Between us, we will hopefully develop useful insights into the key factors that will drive the industry's future performance.

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