Growth in China’s manufacturing sector likely slowed slightly in November as demand remained sluggish, a Reuters poll showed.
The median forecast from 12 economists in the poll was that the official manufacturing Purchasing Managers’ Index (PMI) for November will be 50.6, slightly lower than October’s 50.8.
The survey will be released on Monday.
A reading above 50-point level indicates an expansion in activity while one below that points to a contraction on a monthly basis.
If the survey shows a slower pace of expansion in November, that may keep investors worried that the Chinese economy, which has stumbled this year, may not recover soon.
Industrial Bank Co. Ltd, in a research note, said consumption only showed good signs at an online “singles’ day” promotion by Alibaba Group Holding on Nov. 11 and steel production fell nearly 10 percent this month as mills near Beijing halted operations for the Asia-Pacific Economic Cooperation (APEC) summit.
Hurt by unsteady exports, a housing downturn and cooling investment growth, the Chinese economy is in danger of missing the government’s growth target of about 7.5 percent this year. Third-quarter growth of 7.3 percent was the weakest since the global financial crisis.
China cut interest rates unexpectedly on Nov. 21, stepping up efforts to support the world’s second-biggest economy as it heads towards its slowest expansion in nearly a quarter of a century, saddled under a mountain of debt.
This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.