China's manufacturing sector contracted in March, according to private survey

Tuesday, March 25th 2014 - 23:09 UTC

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Exports dropped 18% in February with a 23bn deficit

China's manufacturing sector showed further contraction in March, according to a new report which mainly tracks activity in smaller factories. The HSBC Purchasing Managers' Index (PMI) gave a reading of 48.1 for March, compared to 48.5 in February.

A reading below 50 indicates contraction, while one above 50 shows expansion.

The HSBC survey focuses on smaller companies in the private sector.

China's official PMI survey, weighted more towards bigger and state-owned enterprises, will be released later this month.

China's official PMI came in at 50.2 in February - an eight-month low, reinforcing signs of a modest slowdown in the world's second biggest economy.

China's exports also dropped 18% from a year earlier in February, leading to a trade deficit of 23bn dollars for the month.

At China's annual National People's Congress earlier this month, Premier Li Keqiang set a growth target of 7.5% this year - the same rate as last year. But he added that there was some flexibility on that target for 2014 and that the Chinese government's main concern was jobs.

Categories: Economy, International.

Tags: China.

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Anglotino
Second largest monthly trade deficit in 30 years.

China's average annual growth was 9.2% between 1989 and 2013. However it has been 8 quarters since it broke above 8% and it is trending to sub-7%.

Seems the path to economic superpowerdom isn't as smooth and quick as predicted.
Mar 26th, 2014 - 02:32 am 0
yankeeboy
Add in a few bank runs, some terrorists killings and some huge defaults it looks like the China dream is coming to an abrupt end.
I've said for a long time the huge reserves aren't enough to get them through a downturn. There are too many mouths to feed there and their economic growth is not real.
You can only have make work projects for so long before they all collapse.
Mar 26th, 2014 - 10:43 am 0
ChrisR
I bet the index stated by ChINDEC will be 50.1% this time!
Mar 26th, 2014 - 11:58 am 0

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