Chinese Factory Survey Points to Weakness

Growth in China’s manufacturing sector slowed in October, an official survey suggests, reinforcing concerns about a slowdown in the wider economy.

The country’s Purchasing Managers Index (PMI) fell to a lower-than-expected 50.8, from 51.1 in the previous month. Any score above 50 represents growth.

Analysts had forecast a small rise in the pace of growth.

Recently released figures showed the wider Chinese economy growing at its slowest pace for more than five years.

Growth between July and September was 7.3% compared with a year earlier, down from 7.5% in the previous quarter.

“There remains downward pressure on the economy, and monetary policy will remain easy,” said analysts at China International Capital after the PMI data was published on Saturday.

via BBC

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza