This is a scholar report.

This is CBS I in the world.

I'm John Baxter with the Scholar Report.

Chris Regal, the CEO of Scholar.com, a global technology firm transforming the retail space with

digital signage and other magic.

However, we go to China where there is no magic.

A headline, Chris has business on all the major

consumer continents. China's factory activity contracts in blow to economic

momentum. This is the financial times within these last hours.

Stronger growth figures for third quarter had buoyed hopes that recovery was turning a corner.

Chris, a very good evening to you you've been reporting anecdotally for months and

months and months about the factory panic in China the lack of orders for this

quarter or that quarter looking forward.

Right now, one more time the China Bulls are disappointed.

The country's official manufacturing purchasing managers Index came in at 49.5,

Missing Forecast and trailing a reading of 50.2 in September.

A reading below 50 marks contraction.

I don't trust any of their numbers. There's no reason to because

those numbers are cooked beforehand, but they're admitting to something that

must be evident even to Beijing. The manufacturers are troubled, the layoffs are increasing and the lack of foreign

investment now must be also a factor for all of these calculations. We're on our way down. The

question is do they have an answer for this and is the answer us is the answer Americans buy more what is the answer what do they

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