The international economic slowdown shows up and spreads

<p>Kia ora,</p><p>Welcome to Tuesday’s Economy Watch where we follow the economic events and trends that affect Aotearoa/New Zealand.</p><p>I'm David Chaston and this is the International edition from Interest.co.nz.</p><p>Today we lead with news international inflation is still raging, while the economic slowdown needed to quell it is starting to show in some parts.</p><p>There were two regional factory surveys out overnight in the US. The <a href="https://drive.google.com/file/d/109EpWR1G_KrMGk0xLQfHsawbq5kAjx2u/view" target="_blank"><strong>Chicago PMI</strong></a> was little changed and that was an unexpected disappointment because an improvement was expected. It remains quite negative. And the <a href="https://www.dallasfed.org/research/surveys/tmos/2022/2210.aspx" target="_blank"><strong>Dallas Fed factory survey</strong></a> for October was also disappointing. Output rose there but the level of new orders didn't and the firms surveyed said the outlook isn't as positive. The Dallas Fed factory survey has been more negative than anywhere else in the rest of the country.</p><p>The <a href="http://www.stats.gov.cn/tjsj/zxfb/202210/t20221031_1889859.html" target="_blank"><strong>official Chinese factory PMI</strong></a> unexpectedly fell to 49.2 in October from 50.1, missing market forecasts of 50.0. This was the lowest reading since July, and comes amid the return of strict pandemic restrictions in several big cities with output, new orders, and export sales all falling. Their <a href="http://www.stats.gov.cn/tjsj/zxfb/202210/t20221031_1889859.html" target="_blank"><strong>service sector PMI's turned negative</strong></a> too, largely for the same reason.</p><p>And here's an indication of just how tough China's anti-Covid measures are. It <a href="https://asia.nikkei.com/Spotlight/Coronavirus/Shanghai-Disney-Resort-locks-crowds-inside-COVID-shut-park" target="_blank"><strong>locked crowds in the Shanghai Disneyland</strong></a> after a case there was suspected. And it is not the first time they have done somet