Amidst the sluggish economic growth and fading global demand, the manufacturing growth is Asia’s biggest economy China fell further in October.
The China Federation of Logistics and Purchasing survey, released on Saturday, showed that its purchasing managers’ index declined by 0.3 this month from September to 50.8.
The index of China Federation of Logistics and Purchasing is a 100 point scale that indicates an expansion of manufacturing sector in case the number shows a score of above 50.
The deceleration reflects a slower pace of economic growth in the Asian country to a five-year low of 7.3 percent in the third quarter of the year.
In a report, federation analyst Zhang Liqun said, “The small decline in the October PMI figure shows that economic growth still faces a certain amount of downward pressure.”
According to Liqun, the new growth stabilizing policies that were unveiled by the government in the third quarter of this year were starting to have an effect on the economy and would soon begin to influence the PMI figures.
Based on this forecast, Liqun said, “PMI figures won’t go be trending downward in the long-term nor will growth be trending downward in the long term.”
Meanwhile, the Chinese leaders have said that the full-year growth in economy may fall short of the 7.5 percent target. But they consider it as acceptable if the inflation rate stays low and the economy continues to yield new job opportunities.
China’s economic growth could decrease close to seven percent next year, according to the World Bank. The global bank said that Beijing requires to be more competitive and efficient by bring reforms to its real estate and labor markets along with its state-run financial system.
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