Chinese manufacturing slows to 3-month low

| December 30, 2010 | 0 Comments
Chinese manufacturing slows to 3-month low

Manufacturing activity in China slowed in December, according to a survey published today.

The HSBC China Manufacturing purchasing managers’ index (PMI) dropped to 54.4 in December from 55.3 in November as output and new orders grew at the slowest pace in three months.

However, the index remains above the crucial 50 level, which indicates expansion and activity in the fourth quarter, as a whole, was the strongest since the first three months of the year.

Meanwhile, the China Federation of Logistics and Purchasing (CFLP) will release its manufacturing data later this week.

Manufacturing growth in China has previously fuelled concerns about the Chinese economy overheating and has added to inflation pressures.

The Chinese Government recently announced plans to curb double-digit food price inflation.

A number of measures have already been introduced by the Government to control prices, such as hiking interest rates – the first time since 2007 such a move was made.

Annual consumer price inflation rose to 5.1% in November, from 4.4% in October - this forced the Chinese Government to lift interest rates on Christmas day - the second time in as many months.

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