This Bloomberg analyst just returned from China and is now 'terrified' for the global economy

This is ominous.

According to a report from Bloomberg’s Timothy Coulter, Bloomberg Intelligence analyst Kenneth Hoffman just spent a week travelling across China and he came back with a really gloomy outlook for the world’s second largest economy.

Hoffman, a metals analyst with Bloomberg, said, things in China are, “a lot worse than you think.”

Hoffman added: “China’s metals demand is plummeting … Demand is rapidly deteriorating as the government slows its infrastructure building and transforms into a consumer economy.”

China has forecast that its economy will grow 7% in 2015, less than the 7.4% growth it saw in 2014 which was its slowest year since 1990.

Over the last year, a number of commodities have seen prices tumble, notably copper, oil, and iron ore, with many taking this decline in commodity prices to mean there is a slowdown in global demand, particularly out of China where infrastructure spending has been a major part of economic growth.

On Wednesday, Business Insider’s Mike Bird highlighted another troubling sign out of China: the lack of money growth in China. Money growth isn’t a perfect measure of the economy, but its growth in China has slowed to the point at which its less than in the US.

Bird added: “Growth in money supply is definitely not perfect, but it provides a rough measure of economic activity in the medium term, so acceleration in the US would generally be a good signal, and the slump in China is a very bad thing.”

And concerns over the health of China’s economy comes as the Shanghai Composite, the major stock exchange in China, has basically doubled in the last year, while reports have indicated that 6% of China’s newest investors can’t read.

You can read Coulter’s full report at Bloomberg here ยป

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