Latest News:  
Beijing   Overcast/Light rain    14 / 9   City Forecast

Home>>China Business

Key factory indicator falls in Oct

(China Daily)

08:19, November 02, 2011

BEIJING - A key domestic manufacturing index dropped to a 32-month low in October, igniting market speculation that tight monetary policy may be eased.

The Purchasing Managers' Index (PMI) slipped to 50.4 last month from 51.2 in September, according to data released by the China Federation of Logistics and Purchasing (CFLP) on its website on Tuesday. The October figure was much lower than market expectations of 51.8. The index was 50.9 in August.

A figure above 50 indicates the manufacturing sector is expanding, while a figure below indicates a contraction.

The latest figure suggests that China's economic expansion could cool further in the fourth quarter, a statement from the CFLP said.

Most Chinese stocks fell on Tuesday amid market concern about an economic slowdown that may eat into corporate earnings despite speculation that the government could ease monetary policies to spur economic expansion.

The PMI is based on a survey of purchasing managers from 820 companies in 20 industries. Growth in the world's second-largest economy is likely to remain modest in the coming months but GDP for the entire year is predicted to increase by 9.2 percent, according to the CFLP.

China's economic growth rate was 9.4 percent in the first three quarters when measured against the previous year. In 2010, the year-on-year GDP increase was 10.4 percent, according to the National Bureau of Statistics.

Zhang Liqun, a senior researcher at the Development Research Center of the State Council, said that slower export growth and investment have dragged down economic expansion in the third quarter. The CFLP said that this is due to weaker external demand amid eurozone debt problems while tight monetary policies have led to cash-flow problems for many companies.

【1】 【2】


 
 
     
 
 
 
     
 
 
 
  We Recommend  
 
 
 
     
 
 

Email|Print|Comments(Editor:陈乐乐)

Leave your comment0 comments

  1. Name

  

Selections for you


  1. IMF to get financial boost

  2. Kungfu fireman competes in games

  3. Fans perform at 6th Peking Opera Festival

  4. Trapped miners rescued after China coal mine accident kills 8

Most Popular

Opinions

  1. Future looks bright for China's bond market
  2. Online rumors dangerous to social order
  3. Widespread diesel crisis unlikely for China
  4. China braces itself for population aging
  5. China's aid to Pakistan shows true friendship
  6. China's securities industry pushed to diversify
  7. Experts weigh in on China's economy
  8. WTO sides with China in EU anti-dumping dispute
  9. US has no stomach for S. China Sea military clash
  10. 7 billion mark no cause for alarm

What's happening in China

Nation to prohibit regular lightbulbs in five years

  1. China's watchdog tests J&J baby shampoo
  2. Calls to boost nursing care for the elderly
  3. Credibility of Chinese organic food crippled
  4. Baby arouses concerns over hospital management
  5. More female officers hired to boost image

PD Online Data

  1. Tangerines and oranges
  2. Dried persimmon cake
  3. Guangdong candy
  4. Tangyuan
  5. What do Chinese eat during the Spring Festival?