China’s tanking economy is costing major US companies money and could throw cold water on America’s economic boom.
China’s slowing economy is chipping away at some American companies’ revenues. DuPont, Danaher, and Procter & Gamble reported second-quarter revenue and volume drops in China. Its economy struggles with youth unemployment, falling retail sales, and lower industrial production.
China’s economy has been worsening, and some American businesses are feeling the pain. Economic data released Tuesday showed the world’s second-largest economy performed below analyst expectations in terms of industrial production, retail sales, and exports.
China’s July economic report didn’t mention youth unemployment statistics after they soared to 21.3% in the second quarter, citing economic and social changes. While Chinese manufacturing and construction are struggling to recover, some American companies with strong ties to China are also feeling the effects.
Some leading chemical and manufacturing companies have reported weaker second-quarter sales, with some cutting their outlook for the second half of the year, saying conditions may worsen. And with falling consumer prices, some companies fear China may slip further into deflation, even as the country’s central bank has implemented interest-rate cuts to incentivize lending.
