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

  • Starbucks branches out Italian style with pizza bakeries

    Economic CTV News
    The American coffee chain, which aims to open 12,000 new outlets worldwide by 2021, is embarking on a whole new culinary adventure in 2017, branching out from coffee to pizza. As well as serving ethically sourced coffee and a host of other hot and cold drinks and snacks, Starbucks -- which aims to increase its global sales outlets by 50 per cent -- is now planning to open a line of standalone Italian bakeries. Source
  • BRP vows to remain in Mexico even if Trump pulls out of NAFTA

    Economic CBC News
    The maker of Ski-Doos, personal watercraft and off-road vehicles says it will maintain low-cost production in Mexico even if Donald Trump withdraws from NAFTA. BRP Inc. says it expects to take a $20-million to $25-million hit if tariffs are restored on more than $1 billion of goods traded annually between Mexico and the United States. Source
  • BRP vows to remain in Mexico even if Trump's withdrawal from NAFTA raises tariffs

    Economic CTV News
    MONTREAL -- The maker of Ski-Doos, personal watercraft and off-road vehicles says it will maintain low-cost production in Mexico even if Donald Trump withdraws from NAFTA. BRP Inc. (TSX:DOO) says it expects to take a $20-million to $25-million hit if tariffs are restored on more than $1 billion of goods traded annually between Mexico and the United States. Source
  • North American markets advance, loonie up slightly

    Economic CTV News
    TORONTO - The Toronto stock market advanced in late-morning trading, led by health-care, utilities and energy stocks. The S&P/TSX composite index added 31.90 points at 15,327.10. In New York, the Dow Jones industrial average advanced 40.85 points to 19,655.66, while the S&P 500 gained 6.02 points at 2,252.21 and the Nasdaq composite rose 27.18 points at 5,444.53. Source
  • Sears Canada reports $120 million loss in third-quarter as revenue drops

    Economic CTV News
    TORONTO -- Sears Canada saw its third-quarter loss grow to $120.0 million from $53.2 million during the same period last year as revenue declined. The loss amounted to $1.18 per share, compared with 52 cents per share a year ago. Source
  • Coca-Cola CEO Muhtar Kent to step down next year

    Economic CTV News
    NEW YORK -- Coca-Cola said Friday that CEO Muhtar Kent will step down as CEO next year and be replaced by Chief Operating Officer James Quincey. The world's largest beverage maker is under pressure to grow as people around the world drink less soda, including its flagship Coke. Source
  • U.S. airlines may soon let you talk on your cellphone in flight

    Economic CBC News
    Airlines could let passengers make in-flight phone calls using Wi-Fi under a proposal from federal regulators. Flight attendants and others have complained that the calls could be disruptive. But the Department of Transportation said Thursday that it envisioned allowing the calls if airlines tell all customers about the policy when they buy their tickets. Source
  • Tribes suing over Dakota Access pipeline willing to put claims on hold

    Economic CTV News
    BISMARCK, N.D. -- Two Sioux tribes suing over the Dakota Access pipeline say they're willing to put their claims on hold while the Army considers whether to allow the pipeline to cross under a Missouri River reservoir in North Dakota. Source
  • Dakota Access pipeline court battle to linger into new year

    Economic CTV News
    BISMARCK, N.D. -- A federal court battle over whether the developer of the Dakota Access oil pipeline can finish the $3.8 billion project will linger at least into the first couple months of the new year. Source
  • Japan ratifies Pacific trade pact despite Trump plans to withdraw U.S.

    Economic CTV News
    TOKYO -- Japanese Prime Minister Shinzo Abe won parliamentary approval Friday for ratification of the Trans-Pacific Partnership, despite U.S. President-elect Donald Trump's plan to withdraw from the 12-nation trade pact. Upper house lawmakers approved the TPP on Friday, heeding Abe's calls to push ahead with it despite Trump's rejection of the free-trade initiative championed by President Barack Obama. Source