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Chinese factory output slows as demand slacken for Asian exp

writer:everlucky time:2016-05-18 10:52

  Jan.8--CHINESE factory output slowed for a 10th straight month in December as surveys across Asia showed industry struggling with weak demand with little help from state stimulus, Reuters reports.

  "We think it's a consensus view that China's GDP growth is poised to slow further to 6.5 per cent in 2016," said an Amsterdam ING investment bank analyst in a research note.

  Most expect China to post its weakest economic growth in 25 years in 2015, with the rate of expansion slipping to seven per cent from 7.3 per cent in 2014.

  The Caixin/Markit China Manufacturing Purchasing Managers" Index (PMI) slipped to 48.2 in December, below market forecasts of 49 and down from November's 48.6.

  That was the lowest since September and well below the 50-point level which marks contraction from expansion. It followed a fractional increase in the official PMI to 49.7.

  "Data suggested that client demand was weak both at home and abroad, with new export business falling for the first time in three months in December," said Markit, which compiles the survey.

  "As a result, manufacturers continued to trim their staff numbers and reduce their purchasing activity in line with lower production requirements."

  Baltic and International Maritime Council (BIMCO) analyst Peter Sand told Lloyd’s Loading List.com that the Caixin reading suggested that container demand at the start of 2016 out of China would be weak.

  "What could improve the situation would be a depreciation of the yuan," he said. "Chinese manufacturers are under pressure from regional lower-cost producers, but they still have the upper hand in many ways as regards to exporting the goods."

  PMIs in South Korea and Taiwan both edged above the 50 mark on a rise in domestic demand rather than exports. The US version of the PMI is expected to show another month of contraction at 49.