China’s economy is showing even slower growth than previously thought. Markit’s PMI showed a reading a 47.7 in November, worse than expected:
“November data showed Chinese manufacturing sector operating conditions deteriorating at the sharpest rate since
March 2009. Behind the renewed contraction of the sector were marked reductions in both production and incoming new business. The latest survey findings also showed a marked easing in price pressures, with average input costs falling for the first time in 16 months. In response, manufacturers reduced their output charges at a marked rate.
After adjusting for seasonal variation, the HSBC Purchasing Managers’ Index™ (PMI™) – a composite indicator designed
to give a single-figure snapshot of operating conditions in the manufacturing economy – dropped from 51.0 to a 32-month
low of 47.7 in November, signalling a solid deterioration in manufacturing sector performance. Additionally, the monthon-month decline in the index was the largest in three years.”
Source: Markit, HSBC