China’s all-important factory sector is losing steam, with manufacturing activity slumping to a three-year low in November, as concerns grow over the economy.
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The official Purchasing Managers’ Index (PMI) fell to 49.6 in November from the previous month’s reading of 49.8, according to the National Bureau of Statistics (NBS), lagging expectations of 49.8 from analysts polled by Reuters.
The index remained above the 50 threshold that separates expansion from contraction for the seventh straight month.
While containing several encouraging elements for China bulls who had predicted a fourth-quarter turnaround, the survey pointed to an economy that is still struggling on a number of fronts, with no significant recovery in sight.
“This indicates that pressure on economic growth has eased and fiscal policy has had a strong effect”.
Among the individual components, operating conditions deteriorated further, while buying activity declined at a record pace.
Despite a pickup, the Caixin manufacturing PMI is still below the 50 watershed.
Imports, on the other hand, fell more drastically, down 17.6 percent on-year to total $34.07 billion for November.
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Looking ahead, economists surveyed by CNNMoney are expecting 6.8% GDP growth for the year – below the government’s own 7% target.
