01 December 2011 04:03 [Source: ICIS news]
The PMI reading of the world’s second biggest economy was last seen in a contraction mode, with a reading below 50%, in March 2009.
Data from the China Federation of Logistics and Purchasing (CFLP) showed that the country’s barometer of manufacturing activities had continuously fallen from April to July. The PMI reading rebounded in August and September, before resuming falls in October.
The monthly declines in PMI indicate that the country's economic momentum is slowing down, said Zhang Liqun, an analyst at CFLP.
Under the November PMI, new orders index fell by 2.7 percentage points from October to 47.8%, while production index dropped by 1.4 percentage points to 50.9% in November, according to the official data.
Purchasing index in November also declined 1.8 percentage points from October to 44.4%, CFLP data showed.
These numbers also indicated a weakening of domestic demand and business enterprises may be faced with shortage of orders this month to early next year, said Zhang.
The PMI, which is a measurement of the monthly performance of
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