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Manufacturing Activity in China Cools
Preliminary figures for a closely watched index of manufacturing activity in China dropped to a three-month low in August, Bloomberg News reports.
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Preliminary figures for a closely watched index of manufacturing activity in China dropped to a three-month low in August, Bloomberg News reports.
Results raise worries that the country will fail to achieve the government's target of 7.5% growth in gross domestic product, the smallest gain since 1990.
A flash report of the Purchasing Managers' Index, produced by HSBC Holdings plc and London-based Markit Economics Ltd., fell from a two-year high of 51.7 in July to 50.3 this month. Any number above 50 indicates growth.
HSBC/Markit will issue final data on Sept. 1. A separate manufacturing index from the National Bureau of Statistics is due on the same date.
A Bloomberg poll of 52 economists finds a median estimate that China's GDP will grow 7.4% this year. But analysts say Beijing must introduce new, targeted stimulus measure to achieve that pace.
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