For one, some of that growth represents export orders taken a few months ago and only now being shipped. Second, adjust the figures so that they strip out the currency effects of China's appreciating renminbi, and growth looks less gung-ho. Third, rising exports do not necessarily mean Chinese factories are still whirring faster and faster; Chinese manufacturers may be running down inventories instead. Last month's 8.2 per cent increase in industrial production supports this notion as it is half the level from the start of the year. Finally, Asian data is indicative of a Chinese slowdown, since around half of China's exports relate to processing goods made around Asia, and then shipping the finished products onwards. Exports from Malaysia, which sends electronic and other parts to China for assembly, fell 7 per cent in October compared to last year, while Taiwanese exports plummeted by 38 per cent in November. If such countries are exporting less to China, it in turn will have fewer finished goods to export to the rest of the world.
Measures that Beijing has taken to tackle China's economic slowdown are only partially reassuring. Government spending on infrastructure projects is unlikely to kick in before the second quarter of 2009. Meanwhile, other indicators suggest economic activity is slowing fast. Take electricity consumption. Power output fell in October, in spite of the drop in energy prices, with sharper declines expected in November. Chinese exports are still growing, for now. But the world's growth engine is running out of steam more quickly than many had thought it would.