Manufacturing growth in China slowed last month, official figures released yesterday showed, amid concerns about soaring food and property prices.
The country’s Purchasing Managers Index fell to 53.9 from 55.2 in November, the China Federation of Logistics and Purchasing, which issues the data with the National Bureau of Statistics, said in a statement yesterday.
The government-backed PMI gives an indication of manufacturing activity by surveying more than 820 companies in 20 industries, including energy, metallurgy, textiles, automobiles and electronics.
A figure above 50 indicates expansion in China’s vast manufacturing sector, while a figure below 50 represents contraction.
The data confirms a slowdown highlighted by the HSBC’s PMI index released on Thursday which fell to 54.4 last month against 55.3 in November.
However, the bank, which interviewed purchasing managers from over 400 companies, said manufacturing activity during the last quarter was stronger than in the previous two quarters.
Zhou Xiaochuan (周小川), the governor of China’s central bank, the People’s Bank of China, pledged on Friday to try to keep prices “basically stable” this year, after the central bank raised interest rates on Christmas Day for the second time since mid-October.
Inflation reached 5.1 percent in November, its highest level in over two years, exceeding analysts’ predictions.
The consumer price index, the main gauge of inflation, stood at 3.2 percent for the 11 months to last month, exceeding the government target of 3 percent for all of last year.
“Today’s numbers reflect government efforts to limit price gains and adjust the nation’s growth model, and economic momentum remains steady,” the China Federation of Logistics and Purchasing said in a separate statement on its Web site yesterday.
Still, inflation is spreading from food to raw materials and energy and may squeeze companies’ margins and hurt export competitiveness, the organization said.
“It’s good to reduce inflation pressures,” said Ken Peng (彭墾), a Beijing-based economist at Citigroup Inc. “I do not see much risk of a sharp economic slowdown.”
Besides raising rates, the central bank increased the proportion of deposits that lenders must set aside as reserves six times last year and allowed the yuan to gain 3.6 percent against the US dollar.
The currency strengthened beyond 6.6 per US dollar on Friday for the first time in 17 years, fueling speculation that officials would allow more gains to counter inflation.
China’s key stock gauge declined 14.31 percent last year, the worst performer among the world’s 14 biggest benchmark indexes, on concern that tightening measures would crimp growth and profits.
PROTECTIONISM: China hopes to help domestic chipmakers gain more market share while preparing local tech companies for the possibility of more US sanctions Beijing is stepping up pressure on Chinese companies to buy locally produced artificial intelligence (AI) chips instead of Nvidia Corp products, part of the nation’s effort to expand its semiconductor industry and counter US sanctions. Chinese regulators have been discouraging companies from purchasing Nvidia’s H20 chips, which are used to develop and run AI models, sources familiar with the matter said. The policy has taken the form of guidance rather than an outright ban, as Beijing wants to avoid handicapping its own AI start-ups and escalating tensions with the US, said the sources, who asked not to be identified because the
Taipei is today suspending its US$2.5 trillion stock market as Super Typhoon Krathon approaches Taiwan with strong winds and heavy rain. The nation is not conducting securities, currency or fixed-income trading, statements from its stock and currency exchanges said. Yesterday, schools and offices were closed in several cities and counties in southern and eastern Taiwan, including in the key industrial port city of Kaohsiung. Taiwan, which started canceling flights, ship sailings and some train services earlier this week, has wind and rain advisories in place for much of the island. It regularly experiences typhoons, and in July shut offices and schools as
Her white-gloved, waistcoated uniform impeccable, 22-year-old Hazuki Okuno boards a bullet train replica to rehearse the strict protocols behind the smooth operation of a Japanese institution turning 60 Tuesday. High-speed Shinkansen trains began running between Tokyo and Osaka on Oct. 1, 1964, heralding a new era for rail travel as Japan grew into an economic superpower after World War II. The service remains integral to the nation’s economy and way of life — so keeping it dazzlingly clean, punctual and accident-free is a serious job. At a 10-story, state-of-the-art staff training center, Okuno shouted from the window and signaled to imaginary colleagues, keeping
Arm Holdings PLC approached Intel Corp about potentially buying the ailing chipmaker’s product division, only to be told that the business is not for sale, according to a source with direct knowledge of the matter. In the high-level inquiry, Arm did not express interest in Intel’s manufacturing operations, said the source, who asked not to be identified because the discussions were private. Intel has two main units: A product group that sells chips for personal computers, servers and networking equipment, and another that operates its factories. Representatives for Arm and Intel declined to comment. Intel, once the world’s largest chipmaker, has become the
RSS