China manufacturing index falls to 3-year low, says govt

/ 10:26 AM February 01, 2016
In this July 29, 2015 photo, workers assemble shoes in a shoe factory in Yongjia county in eastern China's Zhejiang province. The Caixin preliminary survey of factory purchasing managers released Wednesday, Sept. 23, 2015, showed that Chinese manufacturing activity fell to its lowest level in over 6 years, in the latest sign of the deepening slowdown in the world’s second biggest economy. (Chinatopix Via AP) CHINA OUT

In this July 29, 2015 file photo, workers assemble shoes in a shoe factory in Yongjia county in eastern China’s Zhejiang province. AP

BEIJING, China — A key measure of China’s manufacturing activity dropped to its weakest level in more than three years in January, data showed Monday, underlining weakness in the world’s second-largest economy.

The official Purchasing Managers’ Index (PMI), which tracks activity in factories and workshops, fell to 49.4, figures from the National Bureau of Statistics (NBS) showed.


READ: China manufacturing worsens in December — surveyPH to lose out to Thailand, Vietnam as manufacturers leave China

It was the lowest figure since 49.2 in August 2012, and was below the median forecast of 49.6 in a Bloomberg survey of economists.


A reading above 50 signals expanding activity in the vital sector, while anything below indicates shrinkage, and investors watch the figure closely as the first available official indicator of the country’s economic health each month.

It was the sixth consecutive month that the official index showed contraction, which Bloomberg said was the longest such series on record.

The sub-index of new orders was down to 49.5 from 50.2 in December, “suggesting falling demand in the manufacturing market”, while that for employment remained in contraction territory at 47.8, the NBS said.


China grapples with contradictions over currency

Read Next
Don't miss out on the latest news and information.
View comments

Subscribe to INQUIRER PLUS to get access to The Philippine Daily Inquirer & other 70+ titles, share up to 5 gadgets, listen to the news, download as early as 4am & share articles on social media. Call 896 6000.

TAGS: Business, China, China slowdown, manufacturing, manufacturing index
For feedback, complaints, or inquiries, contact us.

© Copyright 1997-2020 INQUIRER.net | All Rights Reserved

We use cookies to ensure you get the best experience on our website. By continuing, you are agreeing to our use of cookies. To find out more, please click this link.