Thursday, January 1, 2015

China Manufacturing Activity Close To Stagnation



The slowdown in the Chinese factory sector was confirmed by results of a survey on Thursday that showed that activity almost stagnated in the final month of last year, while growth improved for a second straight month in the non-manufacturing sector.


The CFLP Manufacturing Purchasing Managers’ Index fell to 50.1 from 50.3 in November, data from the National Bureau of Statistics showed. The index eased for the third month in a row, yet a score above 50 signals expansion in activity.


The latest score was the lowest in 2014. Growth in both production and new orders slowed during December, and employment declined further.


Yesterday, results of the PMI survey by Markit Economics revealed that the factory sector slid into contraction in December amid declines in both output and new orders.


The Markit/HSBC Manufacturing PMI fell to 49.6 from 49.5 in November. The score moved below the boom-or-bust line for the first time since May.


In response to lower total new orders, firms cut their workforce numbers again in December, albeit only slightly, the Markit survey showed. On the prices front, both input prices and output charges fell at the sharpest rates in nine months.


On the other hand, the CFLP non-manufacturing PMI climbed to a four-month high of 54.1 from 53.9 in the previous month.


The services business activity index rose by 0.7 percentage points to 53.3, while the corresponding measure for construction shed 1.8 percentage points to 57.1 percent.


Demand growth improved in the non-manufacturing sector with orders improving in both services and construction sectors.



Published: 2015-01-01 08:19:00 UTC+00







China Manufacturing Activity Close To Stagnation

No comments:

Post a Comment