Surveys point to slow growth of China’s manufacturing

China's manufacturing grew at a sluggish pace in October, and a government industry group reported the slowest growth in nearly three years, partly on weak export orders.

According to the China Federation of Logistics and Purchasing, its monthly purchasing managers index was down a large 0.8 percentage point to 50.4, just above the 50-level that signifies expansion.

It has forecast the economy would slow in the down in the lat months of the year.

According to UBS economist Wang Tao, the figure was consistent with its view that growth was losing steam. She added the weakness in export demand was not surprising, given the ongoing European debt crisis.

A similar survey by HSBC revealed a contrary trend, with its PMI rising to 51.0 in October from 49.9 the month before. Though the figure was an improvement, HSBC said the figure showed just a 'modest rate of growth.'

However, the HSBC's more favourable reading may reflect survey's stronger emphasis on smaller and private companies according to Wang. Such companies had been the focus of efforts for relieving credit problems through new lending by banks and other policies aimed at preventing defaults on debts in the manufacturing sector from spreading.