Mexican Media Brands
Manufacturing Activity in China Falls to 3-Year Low
A Chinese government index of manufacturing activity has dropped to a 39-month low, suggesting the country’s economy is continuing to cool.
#economics
Share
A Chinese government index of manufacturing activity has dropped to a 39-month low, suggesting the country’s economy is continuing to cool.
The official manufacturing purchasing managers index fell to 49.6 in November from 49.8 in October. The PMI has now been below 50, indicating contraction, for four consecutive months.
A second measure, the Caixin PMI, rose to 48.6 in November from 48.3 in the previous month. But it also continues to show contraction. The Caixin, which is more heavily weighted toward small export companies, has indicated negative growth for nine months.
Analysts predict China’s central government will continue to ease monetary policy to help stabilize the economy next year.
RELATED CONTENT
-
China and U.S. OEMs
When Ford announced its 3rd quarter earning on October 24, the official announcement said, in part, “Company revenue was up 3 percent year over year, with net income and company adjusted EBIT both down year over year, primarily driven by continued challenges in China.” The previous day, perhaps as a preemptive move to answer the question “If things are going poorly in China, what are you doing about it?, Ford announced that it was establishing Ford China as a stand-alone business unit.
-
Ford’s $42 Billion Cash Cow
F-Series pickups generate about 30% of the carmaker’s revenue. The tally is about twice as much as what McDonald’s pulls in.
-
Global Car Market to Shrink for 2-3 Years
Global sales of light vehicles will decline year on year through at least 2021, predicts LMC Automotive at its annual outlook conference outside Detroit, Mich.