China’s manufacturing slowed further last month, as a property slump and slowdown in investment growth put the world’s second-largest economy on course for the slowest full-year growth since 1990. The government’s Purchasing Managers’ Index (CPMINDX) was at 50.8 in October, trailing the 51.2 median estimate of analysts in a Bloomberg News survey and compared with September’s 51.1. Readings above 50 indicate expansion. A pullback in manufacturing will test the government’s determination to refrain from broad stimulus. The economy expanded 7.3 percent in the third quarter from a year earlier, the weakest pace in more than five years. “The biggest drivers of growth such as fixed-asset investment are still slowing,” Shen Jianguang, chief Asia economist at Mizuho Securities Asia Ltd., said by phone from Hong Kong after the data. “Heavy industries like steel and coal are contracting on lower prices, and the negative impact of the weak property market is becoming more pronounced.” Growth slowed from September for output, new orders, new export orders, stockpiles and expectations, according to the statement. The economy “still faces some headwinds” although a downward trend is unlikely after the government implemented policies to stabilize growth in the third quarter, the statement said.
Posted on: Sun, 02 Nov 2014 13:05:13 +0000
Trending Topics
Recently Viewed Topics
© 2015