BEIJING: China’s manufacturing growth fell to an eight-month low in February, official figures showed yesterday, in a further sign of the flagging strength of the world’s second-biggest economy.
The purchasing managers’ index (PMI) tumbled to 50.2, the National Bureau of Statistics reported on its website, in the third straight drop from 50.5 in January, 51.0 in December and 51.4 in November.
A figure over 50 indicates expansion while one below shows contraction. This marked China’s 17th consecutive month of manufacturing growth but at a slowing rate — the lowest since a June reading of 50.1. China’s economic growth has weakened in recent years, hitting 7.7 percent in 2013 and the year before, the lowest level since 1999. Analysts
expect a further drop to 7.5 percent this year, and the government, which typically sets conservative expectations, has set the same target.
Economists’ lowered forecast comes as Beijing has pledged to reform the country’s growth model so that consumers and other private actors play a more significant role, rather than massive and often wasteful state investment.
In another closely watched indicator of Chinese manufacturing, British banking giant HSBC said last week its preliminary PMI reading for February dropped to a seven-month low, to 48.3, down from a final figure for January of 49.5. HSBC is set to release its final PMI reading for February today. AFP
