Factory PMI data points to slower China growth
Activity in China’s vast factory sector grew at a milder pace this month on shrinking new export orders, a preliminary private survey showed on Thursday, bolstering expectations that the economy could lose some vigour in the fourth quarter.
Activity in China’s vast factory sector grew at a milder pace this month on shrinking new export orders, a preliminary private survey showed on Thursday, bolstering expectations that the economy could lose some vigour in the fourth quarter.
The Flash Markit/HSBC purchasing managers index (PMI) fell to 50.4 from last month’s final reading of 50.9, but for a fourth consecutive month remained above the 50 level that demarcates expansion of activities from contraction.
“China’s growth momentum softened a little in November, as the HSBC Flash China Manufacturing PMI moderated due to the weak new export orders and slowing pace of restocking activities,” said Qu Hongbin, chief China economist at HSBC.
“The muted inflationary pressures should enable Beijing to keep policy relatively accommodative to support growth,” he said in a comment accompanying the PMI.
The muted inflationary pressures should enable Beijing to keep policy relatively accommodative to support growth
A sub-index measuring new export orders fell to a three-month low of 49.4 from 51.3 last month, reflecting lethargic external demand due to patchy recoveries in developed countries.