China Jan factory growth slips to six-month lowReuters . Beijing
China’s factory growth eased to an expected six-month low in January, hurt by weaker local and foreign demand, a survey showed, a soft start for the year that heightens worries of an economic slowdown.
The official Purchasing Managers’ Index edged down to 50.5 in January from December’s 51, the National Bureau of Statistics said on Saturday, in line with market expectations.
The change reinforces concerns that China’s economy is stuttering and could drag on financial markets on Monday as global investors, already nervous about capital flight in emerging markets, find another reason to sell riskier assets.
Emerging market stocks and currencies were sold off in the past week as investors cut financial bets in developing nations, in anticipation that the United States will continue to move to less easy monetary policy. Super-easy US policy had spurred a flow of cash into emerging markets in recent years.
Saturday’s PMI showed China’s factories saw fewer export orders and slacker growth in new orders last month. A sub-index for new orders fell to a six-month low of 50.9, and export orders slipped to 49.3, also a six-month low and below the 50-point threshold separating growth from contraction in PMIs.
An employment sub-index fell to an 11-month low of 48.2.
Analysts had cautioned before Saturday’s release that the ongoing Lunar New Year holiday, which began on January 31, probably dragged on factory output in January as manufacturers shut shop for China’s biggest annual holiday.
But seasonal factors aside, most analysts noted that China’s economy was fighting headwinds that would only grow in coming months as the country hunkers down for sweeping reforms.
A Reuters visit to China’s southern manufacturing heartlands in January had showed factories smarting from lacklustre demand. Discouraged, many had packed up earlier than usual for the holidays.
‘We expect China’s first-quarter economic growth to show a certain degree of a slowdown,’ ANZ economists Liu Ligang and Zhou Hao said in a note. ‘China should lower its annual economic growth target to 7 per cent.’
The official PMI echoes a separate private survey published by HSBC this month that also showed factory growth in the world’s second-biggest economy retreated to a six-month trough in January.
It is widely understood among investors that the days of stellar, double-digit economic growth in China are over as it tries to embrace slower but better-quality growth to protect its environment and cut reliance on investment.
comments powered by Disqus
Most of the companies listed with the Dhaka and Chittagong stock exchanges in the last three years reported fall in profits, some in the very next year of their listing and some others in the latest interim financial period. Full story
Bangladesh Bank has again pursued a contractionary approach in its latest monetary policy which will hamper the private sector credit growth, said Unnayan Onneshan on Saturday. Full story
Remittance sent by expatriates is mostly used for consumption and in the non-productive sectors in the country, according to a Bangladesh Bank study. Experts attributed the situation to lack of action plan. They said the successive government had failed to... Full story
Unease over emerging markets dominated a busy week of economic and corporate news, pushing stocks lower for a second week in a row and resulting in losses for January. The declines were not as deep as last week's... Full story
Eastland Insurance Company being sponsored by a group of entrepreneur exposed to various economic sectors including financial institutions, Trading, garments, Pharmaceuticals, Press, Construction, Cold Storage etc., started... Full story
Dhaka stocks continued to rise last week, fifth week in a row, as investors were expecting further rise in share prices amid declaration of monetary policy by the central bank. The key index of the bourse, DSEX, increased by... Full story
President Barack Obama Friday took aim at the ‘illusion’ that workers who have spent months or years without a job are unemployable, harnessing the support of top US firms like Apple, Walmart and Boeing. Full story
China’s factory growth eased to an expected six-month low in January, hurt by weaker local and foreign demand, a survey showed, a soft start for the year that heightens worries of an economic slowdown. The official Purchasing Managers’ Index edged down... Full story
Myanmar’s electricity supply is expected to increase in the next five years as the World Bank is planning to invest $1 billion in the country’s power sector including electricity generation, transmission and distribution over the period. Full story
Walmart Stores Inc cut its quarterly profit outlook because of a host of issues, including reduced food stamp benefits for millions of Americans, the restructuring of Sam’s Club unit in the United States and the closure of stores in Brazil and China. Full story
The government of Rajasthan has barred foreign direct investment in the multi-brand retail sector, newspapers said, becoming the second state to block foreign supermarkets from setting up shop. Full story