BEIJING: Manufacturing activity in China stagnated in November, British banking giant HSBC said on Thursday, warning of “significant” pressures on the world’s second-largest economy as its key purchasing managers’ index (PMI) hit a six-month low.
HSBC’s preliminary PMI for the month came in at the 50.0 breakeven point dividing expansion and contraction, the bank said in a statement.
It was lower than October’s 50.4 and was the weakest reading since May’s 49.4, according to the bank’s data.
The index tracks activity in China’s factories and workshops and is a closely watched indicator of the health of the economy, a key driver of global growth.
Protracted easing in new export order growth led output to contract for the first time in six months, while lingering deflationary pressures suggested domestic demand remained insufficient, Qu Hongbin, HSBC’s economist in Hong Kong, said in the statement.