China's man­u­fac­tur­ing, ser­vice ac­tiv­i­ties both con­tracted

The Pak Banker - - 6BUSINESS -

BEI­JING: China's man­u­fac­tur­ing ac­tiv­ity con­tracted for a sev­enth straight month in Fe­bru­ary, in a sign of per­sis­tent eco­nomic weak­ness, of­fi­cial data showed on Tues­day.

The pur­chas­ing man­agers' in­dex (PMI) came in at 49, down from Jan­uary's 49.4, ac­cord­ing to the Na­tional Bureau of Sta­tis­tics (NBS) and the China Fed­er­a­tion of Lo­gis­tics and Pur­chas­ing. A read­ing above 50 in­di­cates ex­pan­sion, while a read­ing below 50 re­flects con­trac­tion.

The in­dex fell to its low­est level since Au­gust 2012, as China is seek­ing new eco­nomic growth en­gines amid a cam­paign to cut in­dus­trial over­ca­pac­ity. NBS statis­ti­cian Zhao Qinghe at­trib­uted the re­treat to slow­ing fac­tory ac­tiv­ity dur­ing the Chi­nese New Year hol­i­days in early Fe­bru­ary, as well as the trim­ming of in­dus­trial ca­pac­ity. In break­down, the sub-in­dex mea­sur­ing pro­duc­tion stood at 50.2, down 1.2 points from a month ear­lier, and that for new or­ders set­tled at 48.6, down 0.9 points. The Caixin Gen­eral China Man­u­fac­tur­ing Pur­chas­ing Man­agers' In­dex (PMI), an­other in­di­ca­tor of man­u­fac­tur­ing ac­tiv­ity , fell to 48 in Fe­bru­ary from 48.4 in Jan­uary.

The read­ing, which was also re­leased Tues­day, was the low­est in five months, ac­cord­ing to the pri­vate sur­vey con­ducted by fi­nan­cial in­for­ma­tion ser­vice provider Markit and spon­sored by Caixin Me­dia Co Ltd. China's ser­vice sec­tor ac­tiv­ity also con­tin­ued to slip in Fe­bru­ary, of­fi­cial data showed. The pur­chas­ing man­agers' in­dex (PMI) for the non-man­u­fac­tur­ing sec­tor came in at 52.7 in Fe­bru­ary, down from 53.5 in Jan­uary, ac­cord­ing to a re­port re­leased jointly by the Na­tional Bureau of Sta­tis­tics and the China Fed­er­a­tion of Lo­gis­tics and Pur­chas­ing.

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