China manufacturing at slowest growth pace in four months
25 Feb 2013
China's manufacturing is expanding at the slowest pace in four months, according to a private survey, pointing to the adverse circumstances faced by policy makers in the world's second-biggest economy.
A Purchasing Managers' Index stood at 50.4 in a preliminary viewing for February, according to a statement from HSBC Holdings Plc and Markit Economics today. This compared well with the 52.3 final reading for January. A number over 50 indicates expansion.
The report today could dampen optimism that an economic rebound was gaining hold after a seven-quarter slowdown and the weakest annual expansion in 13 years. The benchmark Shanghai Composite Index (SHCOMP) declined the most since May 2011 on concern the government would expand restrictions on the property market, in order to curb home-price gains.
According to some experts, the development cast some shadow over China's recovery. They add, Chinese economic fundamentals might prove weaker than previously expected.
The country's economy expanded 7.9 per cent in the final three months of 2012 from a year earlier, the time it picked up in eight quarters.
Exports were up more than estimated last month with a broad measure of credit increasing to a record, boosting prospects that the economic rebound was gaining momentum.
