In an unexpected turn, China's economy sputtered in the last quarter, according to Reuters:
Industrial output expanded at its slowest annual pace in April in nearly three years, while fixed asset investment growth dipped to its lowest in almost a decade.
The weak growth in fixed asset investment signaled that the impact of a prolonged credit crunch in China's real estate sector, and of flagging demand from export markets, was more severe than first thought. ...
Annual export growth of just 4.9 percent in April, below a forecast of 8.5 percent, highlighted the risks to China's factory-focused economy of a fresh downturn in demand.
Continued softness in domestic demand is exacerbated by the impact of financial turmoil in Europe, a major export market.
