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China’s economy struggles as consumers tighten belts

China's economy struggles as consumers tighten belts | iNFOnews.ca
A man looks out from a subway station window panels reflecting the office buildings in Shenzhen, China's Guangdong province, Thursday, Oct. 31, 2019. China's factory activity shrank more sharply than expected in October amid weak consumer demand and a tariff war with Washington, a survey by an industry group showed Thursday. (AP Photo/Andy Wong)

BEIJING – Chinese consumers are tightening their belts and causing a slump in demand that is a bigger threat to economic growth than a trade war with Washington.

Communist leaders are counting on consumers to power the economy, replacing trade and investment. But they are jittery over the tariff war with President Donald Trump and possible job losses.

That hurts sales of cars, real estate and other big-ticket items and helped to cause economic growth to slump to a multidecade low of 6% in the latest quarter.

That is challenging Beijing’s determination to shore up slumping growth without resorting to stimulus spending that might drive up already high debt levels.

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