China manufacturing falls to 11-month low

w460China’s manufacturing activity contracted to a 11-month low in July, an HSBC survey showed Wednesday, the first evidence of the Asian economic giant losing further momentum in third quarter.

The British banking giant said its preliminary purchasing managers’ index (PMI) hit 47.7 this month, down from a final 48.2 in June and the lowest since August.

The index tracks manufacturing activity in China’s factories and workshops and is a closely watched gauge of the health of the economy. A reading below 50 indicates contraction, while anything above signals expansion.

The sluggish reading “suggests a continuous slowdown in manufacturing sectors thanks to weaker new orders and faster destocking”, Qu Hongbin, HSBC economist based in Hong Kong, said in the release announcing the figure.

“This adds more pressure on the labor market,” Qu said, adding it “reinforces the need” for policy support from Beijing to stabilize economic growth.

China’s economy has been weakening this year, with growth in the April-June period dipping to 7.5 percent, from 7.7 percent in the first quarter and 7.9 percent in October-December.

The government, which has set a full-year growth target of 7.5 percent for 2013, has so far refrained from priming the economy with stimulus measures of the kind it took in the wake of the global financial crisis and even last year.

But Premier Li Keqiang reportedly said earlier this month that annual growth of seven percent was a minimum, raising expectations the government may take steps to bolster the economy.

The latest PMI reading suggest China’s growth “has slowed further at the start of the third quarter”, Chris Williamson, chief economist at Markit, the financial information company that compiles the data for HSBC, said in a separate statement.

 

 

Source : Business Inquirer | July 24, 2013

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Thomas D’Innocenzi is a highly accomplished, results-focused international consultant with extensive experience in global sourcing and business development worldwide to meet evolving business needs. Tom has proven ability in implementing and managing profitable global marketing and sourcing operations. He has extensive experience in international business development to accommodate rapid growth. Skilled in building top-performing teams, bench-marking performance, and developing organizations to improve efficiency, productivity, and profitability. Experienced transition leader and change agent. Tom founded Nova Advisors with the mission of providing expert Global Business Development consulting services for companies seeking to expand their market share as an independent consultant. Tom has a network of experts and advisors throughout the Asia-Pacific region and North America. His expertise includes business development, global sourcing, manufacturing, commodities, logistics, QA/QC, FDA, regulatory compliance, sustainability, and supply chain optimization. Tom is experienced in the medical device, apparel, consumer goods and technology services verticals helping companies advance their global sourcing capabilities and develop new markets through a local and sustained approach. Located in SE Asia and the United States, Tom expands market reach to drive sales. His global sourcing strategy includes directly negotiating with commodity suppliers, supply chain networks and distributors for optimal terms based on his expertise and first-hand knowledge of the players. Contact Tom to use his consulting service to increase your global market and make global sourcing profitable for you in the Asia Pacific Region and the United States. http://www.NovaAdvisors.com thomas@NovaAdvisors.com USA Direct: +1.904.479.3600 SINGAPORE: +65.6818.6396 THAILAND: +662.207.9269
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