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Manufacturing in India, China slows in November
December 1, 2015, 6:18 am

China's factory activity hit a 39-month low in November as domestic and international demand remained sluggish, but the services sector shone, as expected, official data showed on Tuesday [Xinhua]

China’s factory activity hit a 39-month low in November as domestic and international demand remained sluggish, but the services sector shone, as expected, official data showed on Tuesday [Xinhua]

Factory activity in both India and China remained sluggish in November, new data on Tuesday revealed.

India’s manufacturing sector grew at its weakest pace in over twenty five months in November as demand and output continued to soften, a business survey showed on Tuesday.

Nikkei’s Manufacturing Purchasing Managers’ Index (PMI), compiled by Markit, fell to a more than 2-year low of 50.3 in November from October’s 50.7.

A reading above 50 indicates expansion.

The output sub-index fell to 50.4 from 51.2 the previous month as domestic demand remained weak.

The subdued domestic demand and competitive pressure appeared to slow new orders, whose sub-index fell to a 25-month low of 50.5, from 51.2 in October.

“Signs of the sector slowing have been building up, as growth of both new orders and output has eased in each of the past four months,” said Pollyanna De Lima, economist at Markit.

Official data released on Monday showed India’s GDP grew 7.4 per cent during the July-September quarter this year.

Meanwhile, China’s manufacturing activity dropped to its weakest level in more than three years in November, the government statistics bureau said on Tuesday.

The official Purchasing Managers’ Index (PMI), which tracks activity in the factories and workshops sector, fell to 49.6.

The production sub-index posted a reading of 51.9, down from 52.2 in October. The sub-index for new orders came at 49.8, back in contraction territory after posting 50.3 in October.

NBS statistician Zhao Qinghe cited tepid domestic and international demand as well as the usual reduction in production seen during winter.

On the bright side, non-manufacturing activity improved in November, signifying that the service sector was stepping up to take a stronger role in supporting the slowing economy.

The PMI for the non-manufacturing sector rose to 53.6 from 53.1 in October.

Logistics, including post and courier services accelerated during the month thanks to China’s Singles’ Day shopping promotion on Nov. 11.

Retail and wholesale business, as well as services such as the Internet software, banking, securities trading and insurance, all saw strong expansion.

The sub-index for new orders in services climbed over 50 to 50.3, up 1.4 percentage points from October, showing a demand rally in the service market, said Zhao.

The non-manufacturing PMI tracks the business activities of the service and construction industries.

The sub-index for the service industry went up to 52.8 in November from 52.3 in October. The sub-index for the construction industry increased 1 percentage point from October to 58.1.

 

TBP and Agencies

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