Chinese manufacturing growth slows in December

| January 2, 2011 | 0 Comments
Chinese manufacturing growth slows in December

Manufacturing activity in China slowed in December, two separate surveys have revealed.

Firstly, the China Federation of Logistics and Purchasing (CFLP) said its purchasing managers index (PMI) fell to 53.9 in December, from 55.2 the previous month.

It was the first time in five months that the index had fallen.

However, the index remains above the crucial 50 level, which indicates expansion and it has remained above this level for 22 consecutive months.

Meanwhile, just a few days ago, the HSBC China Manufacturing 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.

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.

Tags: CFLP, , China Federation of Logistics and Purchasing, , , , , ,

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