Connect with us

Hi, what are you looking for?

Capital Business
Capital Business
China's manufacturing sector faced "intensifying downward pressure"/XINHUA-File

Kenya

China manufacturing at more than 3-year low

China’s manufacturing sector faced “intensifying downward pressure”/XINHUA-File

BEIJING, Sept 3 – China’s manufacturing activity fell to its lowest level in more than three years in August as the global economic slowdown continues to weigh on the world’s largest exporter, HSBC said on Monday.

The final reading of the British banking giant’s closely-watched purchasing managers’ index (PMI), which gauges nationwide manufacturing activity, slid to 47.6 last month from 49.3 in July, HSBC said in a statement.

This was the lowest since March 2009 and marked the tenth consecutive monthly fall, the bank said. It chimed with the official PMI figure released Saturday, which hit a nine-month low of 49.2.

A PMI reading above 50 indicates expansion, while one below 50 points to contraction.

HSBC economist Qu Hongbin said the figures showed China’s manufacturing sector faced “intensifying downward pressure” and urged the government to step up easing measures.

“China’s exporters are facing increasing difficulties amid stronger global headwinds,” he said, adding new export orders contracted last month at the sharpest pace since March 2009 while employers cut jobs at the fastest rate in 41 months.

Authorities have tried to boost the economy with interest rate cuts and by lowering the amount of reserves that banks must keep on hand in a bid to spur the kind of lending that could stimulate a rebound.

However, Qu said the latest manufacturing figures indicated the previous stimulus efforts were not sufficient and more was needed.

“Beijing must step up policy easing to stabilise growth and foster job market conditions,” he said.

China’s economic expansion slowed to 7.6 percent in the second quarter to the end of June, the worst performance in three years and the sixth straight quarter of slower growth.

Advertisement. Scroll to continue reading.

July figures for trade, industrial output, retail sales and foreign direct investment were also weak, raising concerns that government efforts to stimulate growth may have been insufficient.

Click to comment
Advertisement

More on Capital Business

Executive Lifestyle

NAIROBI, Kenya, Mar 12 – The country’s super wealthy individuals are increasing their holding of bonds, gold and cash, a new report by Knight...

Ask Kirubi

NAIROBI, Kenya, Mar 9 – Businessman and industrialist Dr. Chris Kirubi has urged members of the public to exercise extreme caution when making any...

Ask Kirubi

NAIROBI, Kenya, Mar 24 – Businessman and industrialist Dr. Chris Kirubi is set to own half of Centum Investment Company PLC, following a go-ahead...

Ask Kirubi

It is without a doubt that the COVID-19 pandemic has caught the whole world by surprise. Although its full impact is yet to be...

Headlines

NAIROBI, Kenya, Mar 18 – Commercial Banks have been ordered to provide relief to borrowers on their personal loans, with loans eligible from March...

Kenya

NAIROBI, Kenya, Jun17 – Kenya’s tea leaves manufacturer Kericho Gold, has been awarded the Superbrands Seal by Superbrands East Africa for their quality variety...

Coronavirus

NAIROBI, Kenya, Apr 13 – As the local telecommunications industry gears up to roll out 5G networks in the country, the Communications Authority of...

Coronavirus

NAIROBI, Kenya, Mar 22 – Airtel Kenya is offering free internet access for students in order to enable continued learning at home in the...