Surprise: China’s Manufacturing Growth Slows
China, long regarded as the world’s manufacturing juggernaut, may not be as invulnerable after all.
A story in a recent issue of the SFGate (via Bloomberg) reports that China’s manufacturing contracted for the first time since February 2009 in response to a cooling property market and a drop in export demand fueled by the European economic crisis.
The indicator is the Purchasing Manager’s Index. According to the China Federation of Logistics and Purchasing, the index fell to 49.0 in November from 50.4 in October. A level above 50 indicates expansion.
Said Li Wei, a Shanghai-based economist with Standard Chartered Plc, "China's growth will slow further over the next six months. If the deterioration in Europe and the U.S. accelerates in the first half of next year, the government will have to put maintaining growth as its top priority."