The global economy is holding its breath as China records its lowest manufacturing output in seven months, adding to speculations that a global market slowdown is imminent.

The HSBC Purchasing Managers Index for February ended at 48.3, dropping from January’s 49.5. An index below 50 shows that there is tightening in the sector. Equities in the Asia – Pacific dropped after hearing the news, fearing an economic slowdown. After all, China is the 2nd largest economy in the world.

The Australian S&P/ASX200 benchmark dropped by 30 points after hearing the news, showing clear dependence on the Chinese economy.

Read more about this on the Australian website.