Activity in China’s manufacturing sector has fallen to a six-month low due mainly to a fall in new export orders, according to the latest industry data.

The preliminary HSBC China Manufacturing Purchasing Managers Index (PMI) fell to 50.0 in November, compared with a final reading of 50.4 in October. A reading above 50 indicates expansion from the previous month, while a reading below 50 indicates contraction.

HSBC chief China economist Hongbin Qu said new export order growth continued to ease and led to a below-50 reading for the output sub-index for the first time since May.

"Disinflationary pressures remain strong and the labour market showed further signs of weakening. Weak price pressures and low capacity utilisation point to insufficient demand in the economy, he said.

"Furthermore, we still see uncertainties in the months ahead from the property market and on the export front."

"We think growth still faces significant downward pressures, and more monetary and fiscal easing measures should be deployed.”

The preliminary PMI figure, also called the HSBC Flash China PMI, is based on 85 per cent to 90 per cent of total responses to HSBC's PMI survey each month, and is issued about one week before the final PMI reading.

Related news & editorials

  1. 22.03.2018
    by      In
    The Fair Work Commission gave the OK for the construction, textiles, and maritime unions to merge into a new "super union", but the proposal has been meeting pushback from established employers.
    In a response to the merger bid, the commission said it would allow the Construction, Forestry, Mining... Read More
  2. 22.03.2018
    by      In
    A South Australian advanced manufacturing company will use the Land 400 project to climb out of the 'valley of death' and grow its defence business.
    Adelaide-based Plasteel SA is among a number of specialist Australian companies partnering with Rheinmetall Defence Australia, which was last week... Read More
  3. 22.03.2018
    by      In
    Swinburne university has established the Joint Research Centre in Advanced Manufacturing in Weihai Economic and Technological Development Zone in Shandong, creating further connections between industry in Australia, China and South Korea.
    The centre is a partnership between Swinburne, Shandong... Read More
  4. 20.03.2018
    by      In
    The NSW Government has announced a one-off package of up to $47 million to help local government and industry to respond to China’s National Sword policy.
    The announcement came from Environment Minister Gabrielle Upton, who said: “NSW has a strong kerbside recycling system and the Government,... Read More