- CNTV English - CCTV News

China PMI indicates slowdown in service sector

12-06-2011 09:29 BJT

Watch Video

Play Video

Global manufacturing and service activities are showing the strains of escalating debt problems in Europe and the United States.

November's PMI figures from around the world indicate a general slow-down. We start with the latest from China.

China’s non-manufacturing PMI includes services and property - everything that is not produced by factories.

A worker operates an automated welding machine at a workshop in Zouping County, east
China's Shandong Province, Oct. 24, 2011. China's Purchasing Managers' Index (PMI)
dropped to 50.4 percent in October after rising for two consecutive months, down 0.8
percentage points from September, the China Federation of Logistics and Purchasing
(CFLP) said Tuesday. (Xinhua/Dong Naide)

According to HSBC, this gauge dropped to 52.5 in November, from last month’s reading of 54.1. The sharp fall echoes China’s official reading, which indicated an even bigger decline to below the 50 point mark that separates expansion from contraction in the sector. It represents its slowest pace in three months. Analysts point to seasonal factors and the cooling property market as a reason behind the disappointing figure.

Cai Jin, vice chairman of China Federation of Logistics & Purchasing said: "From June, the growth of investment kept decreasing. And this affected the non-manufacturing sector, especially the building industry. Therefore building and real estate business indices have declined. And also due to off-season, there is a decline in retail consumption. The winter season has made it difficult for builders in Northeast China to work, hence a drop in building business."

China’s official figure puts more emphasis on bigger state-run companies, whilst HSBC data reflects the business activities of small- to medium-sized firms. Though the readings raise concern about China’s economic outlook, some analysts are reluctant to read too much into it. Past performance suggests that half that decline will be recovered in December, leaving the index in the mid-50s range.


Editor:Zhang Rui |Source: CNTV.CN

Hot Videos view more

The celebrations are still continuing as the victorious coach, Joachim Loew, has been honored for his achievement in his hometown of Freiburg.
Germany coach Loew honored in hometown of Freiburg

Chinese men´s national team continued its preparations for next year´s Asian Cup, as they managed a one-all draw against visitors Jordan during a football friendly in Harbin, the capital city of Northeast China´s Heilongjiang Province.
China held to 1-1 draw by Jordan

The defending world champs came into the contest with a perfect 6-and-oh record, but they would be in for a tough first half before opening things up in the second.
USA beat Slovenia 119-76 in quarter-finals

Hot Stories more

UK authorities believe killer of James Foley is a British national

Across the UK the hunt is on for James Foley’s killer, who authorities believe is a British national. As Richard Bestic reports from London, Prime Minister David Cameron cut short his summer break to lead his government’s response.

Israeli war jets renews Gaza strike as truce talks stalled

Three Palestinians were killed and 40 others wounded in the intensive Israeli war jets´ airstrikes on the Gaza city on Tuesday night, shortly before an end of a 24-hour ceasefire in the Gaza Strip,

Missouri police arrest dozens after violent night

As the protests in the town of Ferguson, Missouri turned violent with police facing ´heavy gunfire´ from some ´criminal elements´, cops fired tear gas, stun grenades and arrested 31 demonstrators on Monday night.

Picture in news more

More Video News

Choose TV Program