China Factory Activity Lowest Since 2009
World Economy

China Factory Activity Lowest Since 2009

China’s manufacturing continued to contract in September, with the Purchasing Managers’ Index falling to a new six-and-a-half year low of 47.2—a below 50 level signals economic contraction. Last time the PMI was above 50 was nine months ago.
The benchmark for the health of China’s manufacturing sector was lower than the 47.3 reading in August, but higher than the predicted 47, according to figures from Caixin and Markit, issued on Thursday, RT reported.
Beijing’s official PMI, released separately, improved to 49.8 in September from the previous month’s 49.7.  “The industry has reached a crucial stage in its structural transformation.
Tepid demand is a main factor behind the oversupply of manufacturing and why it has not recovered,” Dr. He Fan, Chief Economist at Caixin Insight Group said, commenting on the data.
Firms reported a stronger decline in new orders and further job shedding, according to the report.  The rate of deflation was the sharpest since April.
Business optimism about the year ahead in the service sector fell to one of the lowest levels in the ten-year history of the survey. Only 22% of companies expect their business activity levels to be higher in a year’s time with five percent expecting a decline. Last year those expectations were 31% and 6% respectively.
The Chinese government has ramped up efforts to support the slowing economy and an almost 40% stock market drop since late June. However, with the real economy cooling, Beijing faces a difficult task to reach its stated aim of seven percent growth in 2015.
The Caixin China Report on General Manufacturing is based on about 90% of responses to surveys sent to more than 420 manufacturers.

Short URL : https://goo.gl/1kTf1z
  1. https://goo.gl/Myt2It
  • https://goo.gl/Lbwfcf
  • https://goo.gl/DkB32I
  • https://goo.gl/WvjKvn
  • https://goo.gl/eTBub5

You can also read ...

Thai CB Retains Key Rate
Thailand’s central bank on Wednesday left its key interest...
China and India continue to remain the most promising investment destinations in 2017.
Developing Asia is expected to witness a 15% increase in...
Brazil Raises Deficit Ceiling
Brazil is raising its deficit ceiling for this year and 2018...
Elon Musk, Kevin Plank, Bob Iger, Richard Trumka, Kenneth Carleton Frazier
The honeymoon is definitely over. When US President Donald...
Riksbank is under pressure to tighten its ultra-loose monetary policy.
Underlying inflation topped the Swedish central bank’s target...
At 310% GDP, China’s banking sector is above the advanced economy average and nearly three times  the emerging market average.
China's economy is looking good enough that the International...
Crude oil accounts for 96% of exports and around half of state revenue.
Venezuela might look bad right now amid protests, scarce food...
US Household Debt at $12.8 Trillion
US household debt reached a new record in the second quarter,...