Connect with us

Hi, what are you looking for?

Capital Business
Capital Business


China manufacturing activity shrinks at fastest in 4 years: govt


Manufacturing activity in China shrank at its fastest rate in four years in February, government data showed on Tuesday, a fresh sign of sustained weakness in the world’s second-largest economy.

The official Purchasing Managers’ Index (PMI), which tracks activity in factories and workshops, fell to 49.0 last month, figures from the National Bureau of Statistics (NBS) showed.

It was the lowest figure since 49.0 in November 2011, and was below the median forecast of 49.4 in a Bloomberg survey of economists.

A reading above 50 signals expanding activity in the vital sector, while anything below indicates contraction, and investors watch the index closely as the first available official indicator of the country’s economic health each month.

It was the seventh consecutive month that the official index showed contraction, which Bloomberg News said was the longest such series on record.

The figures came only hours after the central People’s Bank of China cut the amount banks must hold in reserve, in Beijing’s latest attempt to tackle slowing growth.

It trimmed the so-called “reserve requirement ratio” (RRR) for financial institutions by 0.50 percentage points, freeing up more funds for them to lend.

Tuesday’s NBS figures showed market demand “continued to fall” in February as the new orders sub-index slipped to 48.6 from 49.5 in January, while employment worsened with the jobs indicator falling by 0.2 points to 47.6.

Advertisement. Scroll to continue reading.
Click to comment

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...


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


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


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


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