China official manufacturing PMI contracts again in November; falls to 49.6

By FXStreet FXStreet (Mumbai) – The National Bureau of Statistics today stated Chinese official PMI fell to 49.6 in November, the lowest since August 2012. The figures came in below the median estimate of 49.8 arrived at by economists in a Bloomberg survey as well as in the Reuters poll. China’s manufacturing activity contracted for the ninth straight month in November, as per the final Caixin/Markit China Manufacturing Purchasing Managers Index. Weak foreign demand continues to weigh on China’s manufacturing sector.

The non-manufacturing PMI on the other hand increased to 53.6 from 53.1 a month earlier in tune with the CPI’s pledge to rebalance the economy towards services. Nomura believes the growth in the service sector was primarily led by online sales over Singles Day on 11 November.

PBoC rate cuts could not spur growth in the manufacturing sector

The manufacturing PMI once again highlighted the sluggishness in economic growth and confirmed that GDP growth rate for the last quarter will remain extremely dissatisfactory. Clearly, Premier Li Keqiang’s goal of achieving 7 per cent expansion for 2015 is now at risk. Six central bank interest-rate cuts since November 2014 could not spur growth in the manufacturing sector. Services sector on the other hand has shown …read more

Source:: FX Street