How can you tell China's economy is slowing down? Now they purchasing less from Burberry:
Britain's Burberry provided more evidence of China's economic slowdown today when the luxury goods company reported a decline in first quarter sales growth.
But Burberry said its growth opportunity in China remained huge, even though first quarter growth in retail revenue from the country dropped to "mid-teens" percent versus growth of about 20% in the second half of last year.
China has been one of the main drivers of a boom in luxury brands, with consumers eager to buy designer labels, including Burberry's raincoats and other high-end fashions.
But luxury goods firms' shares have wobbled in the past few months over worries about Europe's sovereign debt crisis and slowing growth in China and other emerging markets, where runaway demand for designer brands has previously managed to offset weaker trends in the United States and Europe.
Slower Chinese growth means that their growth rates could fall from around 10% to 7%. With the eurozone teetering on the edge of collapse and America's economy floundering, a weaker China may not be welcomed by anyone.