Purchasing Managers Index falls to 49.0, the lowest level in 32 months, during November.
China’s official Purchasing Managers Index (PMI) has marked a decline in China’s manufacturing sector, with a declination to 49.0 during November; the lowest level since March 2009, the BBC has reported.
China’s success in the manufacturing sector has been pinnacle to its economic growth in recent years, although with the economic shortcomings of two of its biggest export markets – Europe and the US – calls into question how the sector can maintain its pace of growth.
The PMI fall is the first time in almost three years the figure has fallen below the 50 mark.
The Chinese Federation of Logistics and Purchasing (CFLP), who produce the PMI, has also issued a statement on the decline of new orders in November, with the new export orders index slipping to 45.6 from 48.6, signifying a decrease in demand.
Zhang Liqun, a researcher with the Development Research Centre of the State Council, commented: “The November PMI dropped further to below the boom-bust line of 50… indicates that the economic growth pace would continue to moderate in the future.”
The remanufacturing industry in China may also be about to change, with a change in Chinese patent law from first-sale doctrine may severely impact future remanufacturing in Zhuhai.