China is the world's manufacturing powerhouse. So a slowdown there is bound to have an impact on not just the Chinese economy but also the global one. And that indeed seems to be happening. China's manufacturing sector grew more slowly in February. This was gauged from official purchasing managers' index which dipped to 50.1 from 50.4. This suggests that the country's recovery could be slackening. As long as the reading stays above 50 it means that the sector has been growing. It is just that the pace of growth has slowed.

Growth in China's economy had picked up pace post the third quarter as lending and government spending surged. However, along with this, concerns re-emerged over inflation and possible bubble in property prices. This led the Chinese government to tighten monetary conditions, the impact of which was felt by the manufacturing sector as well. Of course, one will have to watch the performance of the sector for a few more months before any noticeable trend can be established. But China, like the rest of the emerging economies including India, has been feeling the heat of inflation. And measures to curb the latter are taking a toll on economic growth.