China manufacturing falls to 11-month low—HSBC

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Two Chinese workers clean glass panels at a mall in Beijing on July 7,2013. Chinese manufacturing activity contracted further in June, data showed on July 1, with a closely watched survey hitting a nine-month low and adding to signs of weakness in the world’s second-largest economy. AFP/WANG ZHAO

BEIJING—China’s manufacturing activity contracted to a 11-month low in July, an HSBC survey showed Wednesday, the first evidence of the Asian economic giant losing further momentum in third quarter.

The British banking giant said its preliminary purchasing managers’ index (PMI) hit 47.7 this month, down from a final 48.2 in June and the lowest since August.

The index tracks manufacturing activity in China’s factories and workshops and is a closely watched gauge of the health of the economy. A reading below 50 indicates contraction, while anything above signals expansion.

The sluggish reading “suggests a continuous slowdown in manufacturing sectors thanks to weaker new orders and faster destocking”, Qu Hongbin, HSBC economist based in Hong Kong, said in the release announcing the figure.

“This adds more pressure on the labor market,” Qu said, adding it “reinforces the need” for policy support from Beijing to stabilize economic growth.

China’s economy has been weakening this year, with growth in the April-June period dipping to 7.5 percent, from 7.7 percent in the first quarter and 7.9 percent in October-December.

The government, which has set a full-year growth target of 7.5 percent for 2013, has so far refrained from priming the economy with stimulus measures of the kind it took in the wake of the global financial crisis and even last year.

But Premier Li Keqiang reportedly said earlier this month that annual growth of seven percent was a minimum, raising expectations the government may take steps to bolster the economy.

The latest PMI reading suggest China’s growth “has slowed further at the start of the third quarter”, Chris Williamson, chief economist at Markit, the financial information company that compiles the data for HSBC, said in a separate statement.

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  • lanceads

    When I’m at the grocery store, I’m very keen on food products. I make sure that all I buy is made in the Philippines even though it’s 2 or 3 pesos higher. I hope all Filipinos do it and not just look for the cheap price tag.

    • sanjuan683

      Your right if that is your mentality. The Chinese have also the same mentality as you have. Stop buying Philippines goods. They will not buy our bananas and other fruits so the loser is Pinoy in the plantation. Stop that hate campaign.

  • warillaman

    It is all over now for this retards, the world has woken up, it is time the world takes action, flood them with our superior quality goods never buy their inferior cheap goods, this is one way of getting our money back for the greedy companies that invested in this mongoloid land.

    • sanjuan683

      Your right the Chinese also won’t buy our products and the loser is the Philippines. hehehehehehehe Remember they are more Chinese people than Pilipinos people. hehehehehe Millions of Chinese people eat bananas and they will not import our good bananas in retaliation of our action against them. Use your head not hate. hehehehe I don’t believe in boycott as boycott can be use against us and the loser is the Philippines and the farmers.

      • warillaman

        he,he,he,he, you think so??? there are millions of americans too, millions of latin americans europeans africans, you think you chinks are the only one we trade with bananas??? you are just scared your goods are made in chinksland, why don’t you try others that are not made in chinks.
        boycott is the best without bloodshed, besides they worst quality goods and you are selling this to all pinoys just because they are cheap, don’t you know the dangers of bringing this poisonous goods in our country, I hope someone catches you soon.

  • calipso_2100

    That’s because the world already knows what “Made in China” means.
    The world has had enough of it.

  • joboni96

    we must help in the development
    divert trade away from tsina and intsik switik

    to india russia brazil southafrica
    mexico latin america

    the beginning of the end of
    massive tsinese growth

    intsik switik will now use the asean sea
    to divert tsinese people against the ruling party

    • sanjuan683

      Sobra yata bilib mo ibang bansa tulad ng India (5/6) Russia, South Africa (negro) and Mexico (tagarito yun mga padre Damaso) Latin America mga switik ang mga iyan ano ka? Tandaan mo ito huag ka papasok sa SM Mall at Robinson Mall pag-aari ng lolo kong Chinese yan sabi mo kasi mo switik sila. Huag ka kakain sa Jolibee dun ka na lang kumain sa McDc maka-kanuto ka. Huag ka mamimili sa Divisoria puro mga lolo kong Chinese ang naroroon pasisipa kita dun.

      • joboni96

        dati pa
        isali mo na rin mga intsik switik banks

        balik ka na pinanggalingan mo
        switik baka sipain na kita ng kungfu

  • magiting78

    Fall of the titans begun….

  • juan cruz

    It starting to effect in to their economy. Primarily when peoples of every countries start boycotting China’s products this will be the results and outcome of their atrocious moves against weak and defendless nieghbors. This bully country China needs a great lessons to remind them of their rude, uncivillzed and ungodly doings. Remember, No other country can just leave alone by itself, It needs some common sorts they don’t have to survives and leave together in a peaceful, good harmony and civilize manner. We are all nations created by God equally and responsibility to one another!

  • ThudOthwacker

    China is heading for a recession. Expect to hear and read the name of George Sorros in coming days.

  • Olibo

    China could cut workers wages into half if they want to.No protest and demonstration. In doing so its labor market will be the cheapest. Balik ang lahat ng investors duon. Possible? Global Filipinos and anti-China countries should establish a Boycott-China organization.

    • magiting78

      Possible….but its people will die in hunger..no need for Philippines to buy warship and new arms….they will lose on their own battle…

  • lanceads

    Let’s not buy Chinese products… let’s see where the Big Bully will go.

    • magiting78

      On ditch…

    • sanjuan683

      China will not import banana from the Philippines in retaliation of what boycott you want. hehehehehehehe Stupid you want your fellow Pinoy working in the banana plantation get hungry. Stupid move use your coconut head not hate.

  • mulaht

    Down with China. See you in Makati guys!!!!!!!!!!!!!!

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