China’s manufacturing weakened by more than estimated in July, according to a preliminary survey of purchasing managers that casts further doubt on the government’s ability to meet its annual economic growth target.
The reading of 47.7 for an index released today by HSBC Holdings Plc and Markit Economics, if confirmed in the final report Aug. 1, would be the lowest in 11 months. Readings below 50 indicate contraction. A separate euro-area gauge showed manufacturing unexpectedly expanded this month.
BEIJING (Reuters) - Growth in China's factories slowed slightly in December as export orders and output weakened, official data showed on Wednesday, adding to views that while the world's second-largest economy remains resilient, it lost some steam in late 2013.
Article written by Prieur du Plessis, editor of the Investment Postcards from Cape Town blog.Growth in the global manufacturing sector is on the brink of contraction. The global manufacturing PMI that I calculate on a GDP-weighted basis for the major economic regions fell to 50.1 in September from 50.4 in August, while the JP Morgan Global Manufacturing PMI fell to 49.9 from 50.1. The U.S. ISM Manufacturing PMI masks the state of the manufacturing sector elsewhere around the globe, though.
Official China PMI for May is out at 9 p.m. ET. Economists polled by Bloomberg are looking for manufacturing PMI to fall to 50, from 50.6 in April. The HSBC Flash PMI fell to a seven-month low of 49.6 in May. A reading below 50 indicates contraction.
Econ Grapher submits:This week we review some of the recent data out of China; first up is a look at the recent slowing in industrial production, followed by signs of slowing in consumer spending. Then we look at the inflation results, which show a potentially short term pick up in inflation. Finally we examine the growth of the money supply and growth in lending; where both measures are slowing due to recent policy moves to install a managed slowdown to counter potential overheating and asset bubbles.
Michael Johnston submits:China’s Purchasing Managers Index rose for the tenth consecutive month in December, signaling a steady expansion in the country’s manufacturing sector. According to the China Federation of Logistics and Purchasing, the index increased to 56.6 in December, up from 55.2 in November. A reading above 50 indicates growth, while a reading below 50 indicates contraction. Of the 11 categories that compose the PMI, nine rose, one fell, and one was unchanged in December compared with November.