none

China manufacturing activity slumps

30-11-2011
by 
in 

China’s manufacturing activity has slumped to its lowest level in 32 months, renewing fears the Asian powerhouse is losing steam amid a deteriorating global economic outlook.

The preliminary HSBC China Manufacturing Purchasing Managers Index, a gauge of nationwide manufacturing activity, fell sharply to 48 in November, compared with a reading of 51 the previous month, HSBC said in a statement.

This is the lowest reading since March 2009.

The fall in the PMI is likely to reignite market concerns over a worsening economic slowdown in the months ahead.

A reading above 50 indicates the sector is expanding while a reading below 50 suggests a contraction.

HSBC chief China economist Qu Hongbin expects cooling domestic demand and weakening external demand for China's exports will lead to a further slowdown in production in coming months.

But Mr Qu says China has more room to ease its tight monetary policy to boost a slowing domestic economy as inflation was now in check.

Beijing, anxious about high inflation, has pulled on a variety of levers to curb price rises in the past year, including restricting the amount of money banks can lend and hiking interest rates.

The measures appear to have worked, as the nation's inflation slowed sharply in October, with the consumer price index rising 5.5 per cent year-on-year, marking the slowest pace since May as food prices fell.

Related news & editorials

  1. 18.07.2018
    18.07.2018
    by      In
    3D printing with metals is affecting the way manufacturing occurs, and Australian distributor Raymax Applications reckons this is amply demonstrated by the application of SLM Solutions machines in metal manufacturing processes.
    SLM Solutions Group recently released its fourth generation 280 system... Read More
  2. 16.03.2018
    16.03.2018
    by      In
    In the 1960s, as much as a quarter of Australia’s workforce was employed in the manufacturing sector, and the industry fuelled 25% of the nation’s economy, according to the Productivity Commission. Half a century on, the closure of Toyota, Ford and then General Motors in October 2017 seemed to... Read More
  3. 24.01.2018
    24.01.2018
    by      In
    According to Southern Cross CEO, Mark Ferguson, if Australian industry really wants to get serious about saving energy then it needs to take a close look at ‘two-stage’, air compressor technology. As energy costs continue to outstrip other business input expenses it is critical, more than ever... Read More
  4. Martin Chappell
    03.11.2017
    03.11.2017
    by      In
    With Australia’s manufacturing industry strengthening, leaders and heads of IT are weighing up which new technologies they should implement to gain a competitive edge. Martin Chappell from Motorola Solutions explains how a simpler and more focused use of data can be the best approach.
    Australia’s... Read More