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Navigation Primary Navigation Home Singapore Asia Pacific World Business Entertainment Sports Technology Top Stories Most Popular Secondary Navigation Singapore Asia Pacific World Search Search: Chinese manufacturing shrinks in December AP - 2 hours 32 minutes ago BEIJING - China's manufacturing shrank for a third month in December as export demand fell, suggesting an economic slump is worsening despite government efforts to shield the country from global turmoil, according to data reported Sunday. A key indicator, the Purchasing Managers Index, edged up from November's all-time low but stood at 41.2, below the 50 level that shows activity is shrinking, the government-sanctioned China Federation of Logistics and Purchasing said. Manufacturing is about 40 percent of China's economic output, and a drop in demand for its exports has triggered thousands of factory closures. That has prompted protests by laid-off workers, and communist leaders worry more job losses could fuel unrest. Beijing launched a multibillion-dollar spending package in November to revive growth and is promising companies loans and other aid. But the stimulus is in its early stages, and analysts say it could take several months to see results. The index of new export orders stood at 30.7, showing a severe contraction, according to the logistics group. Exports fell in November for the first time in seven years and analysts expect more weakness in December when monthly figures are reported this month. The index is based on a survey of 700 manufacturers across China. China's economic growth is expected to fall to about 9 percent this year, down from 11.9 percent in 2007. Analysts have cut 2009 growth forecasts to as low as 6 percent _ a worrisome sign for communist leaders who need to satisfy a public that has come to expect steadily rising incomes. The government is pressing companies to minimize layoffs and has promised to make sure new university graduates can find jobs. Analysts have warned that industrial activity could fall further as manufacturers clear out stockpiles of unsold goods. ___ On the Net: China Federation of Logistics and Purchasing (in Chinese): http://www.chinawuliu.com.cn Email Story IM Story Printable View Blog This Recommend this article Average (0 votes) Sign in to recommend this article » Most Recommended Stories » Related Articles: China's Economy China violates accord with Japan over disputed gas field: reportAFP - 1 hour 7 minutes ago Japan Inc. says recovery unlikely this year: pollsAFP - 1 hour 9 minutes ago Chinese manufacturing shrinks in DecemberAP - 2 hours 36 minutes ago Bank of Japan chief eyes action on strong yenAFP - Sunday, January 4 Related Articles: Business Vietnam workers strike over alleged abuses: reportsAFP - 53 minutes ago China violates accord with Japan over disputed gas field: reportAFP - 1 hour 7 minutes ago Japan Inc. says recovery unlikely this year: pollsAFP - 1 hour 9 minutes ago Most Japan firms see economy worsening in '09-reportReuters - 1 hour 18 minutes ago Chinese manufacturing shrinks in DecemberAP - 2 hours 36 minutes ago Related Full Coverage China Economy china economy All Full Coverage Most Popular – Business Viewed US steel industry in collapse, eyes government aid: report Rare Bugatti untouched for 50 years could fetch millions: report World's oldest person dies at the age of 115 Vogue editor biggest fashion flop of 08: Time Paulson blames global imbalances for credit crisis: report View Complete List » Search: Home Singapore Asia Pacific World Business Entertainment Sports Technology Top Stories Most Popular

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