Thursday, October 4, 2012
China's manufacturing remains in slowdown mode, logistics federation says
China's manufacturing experienced another contraction in September, but improved from August figures, which may indicate the economic downturn is bottoming out, according to the Washington Post.
The China Federation of Logistics and Purchasing reported its monthly purchasing managers' index was 49.8 points, 0.6 higher than in August. Numbers below 50 on the 100-point scale indicate a contraction.
China's economic growth fell to a three-year low of 7.6 percent in the last quarter ending in June. This has hurt Chinese manufacturers who depend on high growth.
Analysts were forecasting a turnaround in late 2012 or early 2013, but weakness in Europe and U.S. export markets may curtail any rebound.
China's slowdown in manufacturing is due mainly to government lending and investment curbs implemented to cool inflation and promote rapid growth, but the country was hurt by the surprisingly sharp decline in export demand.
The logistics federation said production figures stood at 51.3, up 0.4 from August, and that clothing, auto manufacturing, food-processing, electronics and some other industries showed some expansion.
For more of the Washington Post story: washingtonpost.com
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