Slowing China's Inflation - Speeds U.S. Inflation

Posted by Expert Gadget Reviewer on Monday, 3 January 2011

Article yesterday on about how the Chinese government has taken steps to slow down its overheated economy. Specifically the government is limiting bank lending, which immediately led to a slowdown in manufacturing (China's Purchasing Manager's Index shrank from 55.2 to 53.9 surprising most analysts).  

Good for China, but the direct impact on the U.S. (specifically the office furniture industry) will be a continued rise in the cost of imported office furniture. We've seen prices on imported furniture rise steadily since mid 2009 due primarily to transportation cost increases. Now add increased financing costs and a slow down in production, and I expect to see at least two wholesale price increases from our import  vendors in 2012.