China's funk is getting deeper

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Kia ora, Welcome to Wednesday's Economy Watch where we follow the economic events and trends that affect New Zealand.I'm David Chaston and this is the International edition from Interest.co.nz.Today we lead with news China's funk is getting deeper.But first, we can report that <a href="https://www.iata.org/en/iata-repository/publications/economic-reports/air-freight-monthly-analysis---july-2021/" target="_blank">international airfreight volumes</a> are strong, with the July levels +8.9% higher than the July 2019 levels. (We are ignoring the distorted July 2020 base.) The strongest market is North America (up +21%) and the weakest is Asia/Pacific (up just +4.4%).But in the US itself, consumer sentiment is sagging somewhat. The widely-watched <a href="https://conference-board.org/data/consumerconfidence.cfm" target="_blank">Conference Board survey</a> reports a dampening to a six month low in August. The retreat is being attributed to growing fears of the delta pandemic, and the bite of rising inflation.The August <a href="https://s3.amazonaws.com/images.chaptermanager.com/chapters/b742ccc3-ff70-8eca-4cf5-ab93a6c8ab97/files/mni-chicago-press-release-2021-08.pdf" target="_blank">Chicago PMI</a> also reports a pull-back, although not a major one and it is still expanding at an above-average clip in the industrial Mid-West heartland.In Canada, their <a href="https://www150.statcan.gc.ca/n1/daily-quotidien/210831/dq210831a-eng.htm?HPA=1" target="_blank">economy unexpectedly shrank</a> -0.3% from the prior quarter in Q2 2021, ending three straight quarters of expansion. This was mostly due to a decline in housing market activity and exports. They are in an election campaign there, so this news won't help the Trudeau government.In China, the <a href="http://www.stats.gov.cn/tjsj/zxfb/202108/t20210831_1821440.html" target="_blank">official factory PMI</a> shows their expansion has

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