none

CHINA MANUFACTURING HITS 11-MONTH LOW

28-03-2015
by 
in 

China’s manufacturing activity contracted in March at its fastest rate in almost a year, according to industry data.

The HSBC/Markit Flash China Manufacturing Purchasing Managers' Index (PMI) fell to 49.2, below the 50-point level, which indicates growth in the sector.

The market consensus had been for marginal growth of 50.6 and only a slight decline on the reading of 50.7 last month.

This suggests worsening conditions in the world’s second-largest economy.

The index, compiled by information services provider Markit, tracks activity in China’s factories and workshops and is regarded as a barometer of the health of the Asian economic giant.

The sluggish reading “signalled a slight deterioration in the health of China’s manufacturing sector in March”, Markit economist Annabel Fiddes said in the statement.

“A renewed fall in total new business contributed to a weaker expansion of output, while companies continued to trim their workforce numbers,” she said, adding that “relatively muted client demand” had led producers to cut prices.

“The figure is much lower than expected, mainly reflecting weak domestic demand,” Nomura Securities economist Wendy Chen told the Wall Street Journal. “That points to weaker economic growth in the first quarter,” she said, adding that Nomura is sticking with its forecast of 6.9 per cent year-over-year first-quarter growth, compared with 7.3 per cent growth in the fourth quarter.

The economy expanded 7.4 per cent last year — the slowest pace in nearly a quarter of a century — and official data earlier this month showed production, consumption and investment growth had all fallen to multi-year lows.

The government has reduced its annual growth target for this year to “approximately seven per cent”, the lowest since a similar goal in 2004.

Related news & editorials

  1. 20.09.2018
    20.09.2018
    by      In
    Control Logic has set its sights on expansion, with a new leadership team incorporating key roles in products and marketing, sales and development, and operations and services. The move aims to increase the company’s skill set and focus to drive innovation and expand the company’s expertise and... Read More
  2. 19.09.2018
    19.09.2018
    by      In
    The Australian Made Campaign is providing some valuable support for the nation’s furniture manufacturers with its latest initiative, which urges local buyers to ‘take comfort in their purchase’ and choose genuine Aussie furniture, bedding and furnishings this spring.
    According to Australian Made... Read More
  3. 12.09.2018
    12.09.2018
    by      In
    Siemens has unveiled its new manufacturing facility in Yatala (Queensland), which has been set up to support the growing global demand for the locally developed Fusesaver medium-voltage circuit breaker.
    The new factory is part of an ongoing $25 million investment in manufacturing and research of... Read More
  4. 11.09.2018
    11.09.2018
    by      In
    APS Industrial has relocated its Melbourne base into an all-new 4500m2 head office and national distribution centre in Rowville. The new facility includes an interactive product showcase room and state of the art conference facility.
    According to APS Industrial MD David Hegarty, “Since our launch... Read More