Due to global economic slowdown the capacity of Chinese manufacturing ability slows down to a 32 month low in November and raise the attention about the global economic slowdown, according to preliminary report issued on Wednesday.
Chinas Purchasing Managers index for manufacturing deteriorated to 48, according to statement issued by HSBC. It was down 3 points from its original reading of 51on October.
Any reading above 50 shows that there is growth of the selected sector of the economy while reading below 50 is a contraction in activity.
One of the drivers of the economy of China is the Chinese Factories, so the slowdown could have global ramifications. China’s Gross Domestic Product during the third quarter grew at an annual pace of 9.1% which happened at the third quarter of the year depleted to 9.5 % growth in the second quarter and 9.7 growths in the first three months of the year.
Deutsche Bank analyst Jim Reid and Colin Tan quoted that “The monthly (PMI) reading has been steadily improving since July with prints of 49.3, 49.9, 49.9, 51.0 before today,”
The blend of this Chinese PMI report and weaker Japanese Exports will raise some concerns about a euro-led export slowdown in Asia.”
