Move FM Australian News
Factory sector in China contracts for first time in more than 2 years
Jan 2, 2019BEIJING, China – The powerhouse of Asia could well be losing steam.
China, which has led the region with strong economic growth for the past two decades, could be stalling.
The factory sector, the mainstay of China’s global manufacturing dominance, contracted in December for the first time in two-and-a-half years.
The official purchasing managers index dropped to 49.4, well short of expectations. (A sub-50 reading indicates manufacturing activity has contracted – compared to the previous month).
Economic growth in the country has been slipping in recent years, with 2018 on track for the worst performance in almost three decades.
Ballooning debt levels and trade tensions with the United States have analysts marking back prospects for the world’s second largest economy.
Any set-back in China is likely tro impact economic growth in the region, and to a degree globally.
Australia for example is highly dependent on China which imports the majorority of its iron ire and other commodities.
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