China’s Manufacturing May Contract a Second Month, Preliminary PMI Shows
China’s manufacturing may contract for a second month in December as Europe’s debt crisis weighs on exports and home sales slide, preliminary results from a survey indicate.
The reading of 49 for a purchasing managers’ index reported by HSBC Holdings Plc and Markit Economics today compares with a final number of 47.7 for November. The dividing line between contraction and expansion is 50.
China’s money-supply expanded by the least in a decade in November and Communist Party leaders yesterday described the global outlook as “very grim,” underscoring the case for monetary and fiscal easing to support growth. The central bank announced a cut in lenders’ reserve requirements on Nov. 30, the day before the HSBC PMI indicated the nation’s biggest contraction in manufacturing since March 2009.
To contact Bloomberg News staff for this story: Li Yanping in Beijing at yli16@bloomberg.net
To contact the editor responsible for this story: Paul Panckhurst at ppanckhurst@bloomberg.net
Dec. 15 (Bloomberg) -- Banny Lam, a Hong Kong-based economist at CCB International Securities Ltd., a unit of China’s second-largest bank, talks about the nation's economy, central bank monetary policy and stock market. Lam speaks with Rishaad Salamat on Bloomberg Television's "On the Move Asia." (Source: Bloomberg)
Rate this Page
Bloomberg moderates all comments. Comments that are abusive or off-topic will not be posted to the site. Excessively long comments may be moderated as well. Bloomberg cannot facilitate requests to remove comments or explain individual moderation decisions.