Activity in China’s factory sector contracted in December for the first time in seven months as new orders declined, a preliminary private survey showed on Tuesday, fuelling expectations that more stimulus will be needed to avert a sharper economic slowdown. The flash HSBC/Markit manufacturing purchasing managers’ index(PMI) fell to 49.5 in December from November’s final reading of 50.0 and below the 50.0 reading forecast by analysts.
A reading below 50 indicates contraction, while one above 50 points to expansion on a monthly basis. The gloomy report will reinforce investors’ fears that the world’s second-largest economy is losing momentum, and add to bets that more strong stimulus measures are on the cards after the central bank unexpectedly cut interest rates last month.
“The manufacturing slowdown continues in December and points to a weak ending for 2014,” said Hongbin Qu, chief economist for China at HSBC. “The rising disinflationary pressures, which fundamentally reflect weak demand, warrant further monetary easing in the coming months.”
Content 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 Business Information & Services, Inc. or any of its affiliates, subsidiaries, officers or directors. If you would like to reproduce or redistribute any of the content found on MarketPulse, an award winning forex, commodities and global indices analysis and news site service produced by OANDA Business Information & Services, Inc., please access the RSS feed or contact us at info@marketpulse.com. Visit https://www.marketpulse.com/ to find out more about the beat of the global markets. © 2023 OANDA Business Information & Services Inc.
Latest posts by marketpulsefxstaff (see all)
- Oil Remains Near Multi-Month Lows - 6 August 2015
- U.S. Dollar Higher on Recent Data - 6 August 2015
- Greece’s PM Tsipras: Loan Deal with Lenders Close - 6 August 2015