Chinese manufacturing index at weakest since 2012

HONG KONG - Chinese manufacturing ebbed in January to its lowest in more than three years, a possible sign of further weakness in the world's No.

See Full Article

2 economy after posting its slowest annual growth in a quarter century.

An index based on an official survey of factory purchasing managers fell to 49.4 last month from December's 49.7. It was the sixth straight month of deteriorating conditions in China's massive manufacturing sector, which employs many millions of workers. The index released Monday uses a 100-point scale on which numbers below 50 indicate contraction.

The latest reading is also the lowest since August 2012 and worse than many economists were expecting. Production fell, factories cut jobs and new orders, which are a sign of overall demand, slipped into contraction last month, according to the report by the China Federation of Logistics and Purchasing.

China's economic growth has been steadily falling for the past half-decade as Beijing attempts to wean the economy off a tired model based on exports and investment in infrastructure in favour of domestic consumption and services. However, an unexpectedly sharp decline over the past two years has stoked fears of a politically dangerous spike in job losses.

China's economy grew 6.9 per cent last year, which was its slowest expansion in 25 years.

Separately, the private Caixin/Markit purchasing managers' index showed marginal improvement, with the index edging up to 48.4 in January from 48.2 in December.

The Caixin survey mostly covers smaller, private enterprises while the federation's report focuses on larger, state-owned companies.

"Recent macroeconomic indicators show the economy is still in the process of bottoming out and efforts to trim excess capacity are just starting to show results," said He Fan, chief economist at Caixin Insight Group. "

The pressure on economic growth remains intense in light of continued global volatility," said Fan, who called for policymakers in Beijing to continue rolling out finely tuned stimulus measures as needed to prevent growth from slowing too sharply.

Economic data from China are typically distorted by the Lunar New Year holiday, with factories stocking up on raw materials and rushing to fill orders before closing for an extended break that starts at different times in January or February. This year's holiday starts in a week's time.

Meanwhile, activity in China's service industries also eased off. An official purchasing mangers' index for services slipped to 53.5 in January from 54.4 the month before.



Advertisements

Latest Economic News

  • 'We always find a way': N.L.'s oil-dependent economy is hurting, but there is hope on the horizon

    Economic CBC News
    Dwight Ball, the affable pharmacist who has been Newfoundland and Labrador's premier for the last 15 months, said something remarkable Wednesday while swinging an axe through several hundred government jobs. "We're human, too. This impacts us," said Ball, who clearly has shown no relish for the more brutal parts of dealing with an oil-dependent economy during a collapse in petroleum prices. Source
  • Deciphering Trump's curious comments on Keystone XL pipeline

    Economic CBC News
    In his nearly hour-long speech at the Conservative Political Action Conference on Friday morning, U.S. President Trump talked about a lot of things — the media, Obamacare, trade and crime. But he also ventured into pipelines. Source
  • Ontario police looking for 'large quantity' of stolen cheese

    Economic CTV News
    SOUTH WEST OXFORD TOWNSHIP, Ont. - Police in southwestern Ontario are looking for thieves who made off with a lot of cheese. Ontario Provincial Police say the Village Cheese Mill in South West Oxford Township, east of London, Ont. Source
  • Stock prices slide lower despite large profits at big banks

    Economic CBC News
    Canada's benchmark stock index is on track for its worst day of the year as oil prices are lower and financial firms are selling off despite record earnings at some of Canada's biggest banks. The S&P/TSX composite index was off by 260 points to 15,520 in the afternoon. Source
  • TSX tumbles 247 points despite big profits at big banks

    Economic CBC News
    Canada's benchmark stock index is on track for its worst day of the year as oil prices are lower and financial firms are selling off despite record earnings at some of Canada's biggest banks. The S&P/TSX composite index was off by 260 points to 15,520 in the afternoon. Source
  • 'Baycott': Why 'Peeved Beavers' are upset by Ivanka Trump's brand at the Bay

    Economic CTV News
    Armed with distinctive blonde wigs, pursed lips and red power ties, a group of Ontario women are planning to dress up as U.S. President Donald Trump to protest the Hudson’s Bay Co. for carrying Ivanka Trump’s fashion line during two demonstrations in the Toronto area planned for Saturday. Source
  • Nova Scotia tourism sees third consecutive year of growth

    Economic CTV News
    HALIFAX - Nova Scotia says the province's tourism industry continued a steady upswing in fortunes in 2016. It says 2.2 million visitors came to the province -- that's up eight per cent, or about 170,000 more visitors, than in 2015. Source
  • Husky may sell some of its assets in N.L. offshore oil industry: sources

    Economic CBC News
    Canadian oil and gas producer Husky Energy Inc is weighing paring down its stakes in some of its Eastern Canadian offshore assets, in a move that could fetch as much as several billion dollars, people familiar with the talks have told the Reuters news service. Source
  • Cleanup of oil spill in Sask. cost $107M, Husky Energy says

    Economic CTV News
    CALGARY -- Husky Energy says efforts to clean up a major oil pipeline spill last year in Saskatchewan have cost $107 million. About 90,000 litres of heavy crude and diluent leaked into the North Saskatchewan River last July, jeopardizing drinking water supplies for thousands of people downstream. Source
  • Ottawa's deficit hits $14B through first nine months of fiscal year

    Economic CBC News
    The federal government ran a budgetary shortfall of $14 billion over the first nine months of the fiscal year, compared with a $3.2-billion surplus over the same period a year earlier. The Finance Department's monthly fiscal monitor says federal program expenses between April and December rose $16.7 billion, or 8.8 per cent, compared with the same stretch a year ago. Source