ZCZC
BCN-09
CHINA-ECONOMY-MANUFACTURING
China factory activity slows in October amid trade war woes
BEIJING, Oct 31, 2018 (BSS/AFP) – Chinese factory activity slowed in
October, official data showed Wednesday, adding to a growing list of bad news
for the Asian giant as it struggles to maintain economic momentum in the face
of American tariffs and a weakening yuan.
The Purchasing Managers’ Index (PMI), a key gauge of factory conditions,
came in at 50.2 for the month, down from 50.8 in September, the National
Bureau of Statistics said.
The figure was below the 50.6 reading tipped in a Bloomberg News survey of
economists.
Although the numbers indicated a slowdown, they remained above the 50-
point mark that separates expansion from contraction.
The figures are the latest sign that the world’s second-largest economy is
losing momentum as it faces challenges at both home and abroad — from a
trade war with the US to a massive debt buildup.
Growth dipped to 6.5 percent in the third quarter, down from a high of 6.8
this year.
The number was in line with Beijing’s annual target. But further downward
pressure could threaten the country’s key political goals of eliminating
poverty by 2020 and building a “moderately prosperous society”.
American tariffs on virtually all Chinese imports have sapped confidence
in Beijing’s ability to maintain current growth levels.
Analysts say that the country’s overleveraged companies and local
governments are likely to put a further drag on expansion.
On Tuesday, China lowered its yuan-fixing rate to its lowest level in a
decade.
A weaker yuan makes Chinese exports less expensive overseas, ameliorating
some of the higher costs brought by the tariffs.
BSS/AFP/HR/0920