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Montevideo, November 14th 2018 - 11:44 UTC

China's manufacturing contracts for sixth month running in January

Monday, February 1st 2016 - 09:36 UTC
Full article 3 comments
According to the latest factory survey, the Purchasing Managers' Index (PMI) showed a reading of 49.4 for the month compared to December's reading of 49.7. According to the latest factory survey, the Purchasing Managers' Index (PMI) showed a reading of 49.4 for the month compared to December's reading of 49.7.
China's economy grew by 6.9% in 2015, compared with 7.3% a year earlier, its slowest growth in a quarter of a century. China's economy grew by 6.9% in 2015, compared with 7.3% a year earlier, its slowest growth in a quarter of a century.

Activity in China's manufacturing sector contracted for the sixth month in a row in January - and hit its lowest level since 2012. According to the government's latest factory survey, the Purchasing Managers' Index (PMI) showed a reading of 49.4 for the month compared to December's reading of 49.7.

 Expectations were for a reading of 49.6 for the month. A figure below 50 indicates that factory activity contracted.

Analysts said the numbers confirmed that momentum in Chinese economic activity had continued to weaken into 2016.

“It is quite concerning that the significant monetary and fiscal stimulus in 2015 has only managed to slow the rate of decline in China's industrial activity,” IG Markets' Angus Nicholson told the BBC.

The first three months of activity is considered the weakest in China due to the seasonal disruption of Chinese New Year, Mr Nicholson explained.

“The big question is how much of this first quarter weakness in China will carry over to the second quarter. It is looking like it will be quite a struggle for China to even hit its lowered growth target of 6.5% for 2016.”

China's economy grew by 6.9% in 2015, compared with 7.3% a year earlier, marking its slowest growth in a quarter of a century. Beijing had set an official growth target for the year of “about 7%”.

China's slowing growth is a major concern for investors around the world, as the country has been a key driver of the global economy.

Categories: Economy, Politics, International.

Top Comments

Disclaimer & comment rules
  • ChrisR

    Are the numbers believable or are they 'wishes'?

    Feb 01st, 2016 - 11:39 am 0
  • yankeeboy

    Hedge funds are betting a 40% depreciation in the Yuan.

    bye bye China
    and
    Germany

    It so funny to remember all the rubes on this board that I used to argue with about China. People are so easily duped.

    Feb 01st, 2016 - 01:16 pm 0
  • Briton

    Are they toilet rolls .lol

    Feb 01st, 2016 - 07:45 pm 0
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