Indicators hint China on verge of sharp slump

After a bumper 2007, which saw GDP expand nearly 12 per cent, growth in China has been slowing and fell to 10.1 per cent in the second quarter.

Economists expect the economy to have experienced a further slowdown in the third quarter, with growth down to 9.7 per cent.

However, other indicators, from steel prices to housing sales, have suggested that the Chinese economy could be on the verge of a much sharper slump, which would weaken demand for commodities and undermine global growth prospects.

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