Arab Today, arab today chinas manufacturing growth at 8month low
Last Updated : GMT 19:54:52
Arab Today, arab today
Arab Today, arab today

China's manufacturing growth at 8-month low

Arab Today, arab today

Arab Today, arab today China's manufacturing growth at 8-month low

Factory in Lianyungang
Beijing - AFP

China's manufacturing growth skidded to an eight-month low in November, an official survey showed Monday, fuelling speculation authorities will take further steps to stimulate the world's second-largest economy.
China's official Purchasing Managers' Index (PMI) released by the National Bureau of Statistics  came in at 50.3 last month, lower than the 50.8 recorded in October and the weakest since a similar 50.3 reading in March.
The index, which tracks activity in factories and workshops, is considered a key indicator of the health of China's economy, a major driver of global growth. A figure above 50 signals expansion, while anything below indicates contraction.
"The decline in the PMI was broad-based, led by output and new orders," Nomura economists said in a note on the data.
"The weaker PMI data implies that growth momentum remained weak in November," they said, adding: "This helps explain the People’s Bank of China’s decision to cut benchmark interest rates" last month.
China's central bank on November 21 surprised economists by cutting benchmark interest rates for the first time in more than two years, in a move interpreted as an attempt to shore up flagging growth.
The PBoC lowered its one-year rate for deposits by 25 basis points to 2.75 percent and its one-year lending rate by 40 basis points to 5.6 percent.
The move came after a string of disappointing data showed the Chinese economy is struggling with not just stalling factory growth, but other problems including soft exports and a weakening property market.
Authorities had for months utilised various kinds of limited stimulatory measures such as targeted cuts in bank reserve requirements -- aimed at freeing up funds for lending -- and a cash injection into the country's five biggest banks for re-lending.
- More rate cuts expected -
Separately, a closely watched private survey of manufacturing conditions was confirmed to have fallen to a six-month low showing stagnation.
British bank HSBC's final PMI for November came in at the 50.0 breakeven point dividing expansion and contraction, the bank said in a statement, matching a preliminary figure released last month.
The result, compiled by information services provider Markit, was lower than October's 50.4 and the weakest reading since May's 49.4.
"Domestic demand expanded at a sluggish pace while new export order growth eased to a five-month low," Qu Hongbin, HSBC's chief China economist, said in the statement.
Qu added that the PBoC rate cuts will aid in stabilising investment in property and manufacturing in the months ahead.
"We continue to expect further monetary and fiscal easing measures to offset downside risks to growth," he added.
The Nomura analysts said they expect more measures next year, including another interest rate cut in the second quarter and a reduction in reserve requirement ratios in each quarter.
China's economy expanded 7.3 percent in the July-September quarter, down from 7.5 percent in the previous three months and the slowest since 2009 at the height of the global financial crisis.
A slowdown in China's huge property sector has been weighing on overall growth, with broader worries about the health of the country's financial sector also a cause for concern.
China's housing prices fell on a monthly basis for the seventh straight month in November, a survey showed Sunday.
The average price of a new home in China's 100 major cities was 10,589 yuan ($1,720) per square metre in November, down 0.38 percent from October, the independent China Index Academy said in a statement.
Julian Evans-Pritchard, China economist at Capital Economics, warned, however, against overconfidence in policy support to underpin growth.
"The recent cut in the benchmark rates will do little to boost economic activity unless followed by a loosening of quantitative controls on lending, which policymakers will remain cautious about given concerns over mounting credit risk," he said in a note.

 

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today chinas manufacturing growth at 8month low Arab Today, arab today chinas manufacturing growth at 8month low

 



Arab Today, arab today
Arab Today, arab today Heart of Turkish Riviera is Alluring Seaside Escape

GMT 11:11 2017 Tuesday ,28 March

Heart of Turkish Riviera is Alluring Seaside Escape
Arab Today, arab today 5 Crafty Must-Have Limited-Budget Ideas

GMT 17:03 2017 Saturday ,25 March

5 Crafty Must-Have Limited-Budget Ideas
Arab Today, arab today Hamas leader accuses Israel

GMT 11:43 2017 Tuesday ,28 March

Hamas leader accuses Israel
Arab Today, arab today Media host gives priority to problems of people

GMT 07:00 2017 Tuesday ,28 March

Media host gives priority to problems of people
View News in Arabic - Business: اقتصاد دولي
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Disaster costs nearly double to $175bn

GMT 10:42 2017 Tuesday ,28 March

Disaster costs nearly double to $175bn
Arab Today, arab today Campaign fights sexual harassment in Egypt

GMT 11:14 2017 Tuesday ,28 March

Campaign fights sexual harassment in Egypt
Arab Today, arab today Trump poised to roll back climate protections

GMT 09:28 2017 Tuesday ,28 March

Trump poised to roll back climate protections
Arab Today, arab today Prepares to give stargazers an eyeful

GMT 13:38 2017 Monday ,06 March

Prepares to give stargazers an eyeful
Arab Today, arab today Uber grounds self-driving cars

GMT 09:11 2017 Monday ,27 March

Uber grounds self-driving cars
Arab Today, arab today Audi RS 5 Coupe acquires new design

GMT 13:22 2017 Thursday ,23 March

Audi RS 5 Coupe acquires new design
Arab Today, arab today Trump to roll back Obama clean power plan

GMT 11:10 2017 Monday ,27 March

Trump to roll back Obama clean power plan

GMT 09:58 2017 Saturday ,25 March

Nermein Al Fekki films “Foxes in the Valley”

GMT 18:57 2017 Tuesday ,21 March

Accessories designer reveals her new collection

GMT 04:51 2017 Friday ,24 March

Salvage of South Korea's Sewol ferry

GMT 13:26 2017 Friday ,24 February

Expresses Algerian history by woody figures

GMT 09:02 2017 Thursday ,23 March

Laptop ban sparks ire

GMT 06:31 2015 Thursday ,04 June

Pluto's unruly moons

GMT 13:21 2017 Tuesday ,28 March

Samsung plans to sell refurbished Galaxy Note 7s

GMT 19:27 2017 Saturday ,11 March

Boualsof launches "Priestess Kahina" collection
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday