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The Contraction In Chinese Manufacturing Accelerates In October

Source: http://chinaeconomywatch.blogspot.com/2008/11/contraction-in-chinese-manufacturing.html
Posted on Monday, November 3rd, 2008 | In China
Contributed by: Edward Hugh (http://globaleconomydoesmatter.blogspot.com) -

China’s manufacturing contracted by the most on record last month as the global financial crisis cut demand for exports, a second survey showed. The CLSA China Purchasing Managers’ Index fell to a seasonally adjusted 45.2 in October from 47.7 in September. The output index fell to 43.4 in October from 46.7 in September, while the index of new orders declined to 43.8 from 45.8. The index of export orders dropped to 44.3 from 45.9.

The government-backed China Federation of Logistics purchasing managers’ index – published on 1 November – also showed a strong contraction, falling to 44.6 in October, the lowest level since the data began in 2005, from 51.2 in September.

Basically, not only does Chinese manufacturing seem to have been in contraction mode for the last several months now, the rate of contraction seems to be accelerating.

To be watched, and carefully.

Last 5 posts by Edward Hugh





About Edward Hugh (http://globaleconomydoesmatter.blogspot.com)
Edward Hugh is a macro economist, who specializes in growth and productivity theory, demographic processes and their impact on macro performance, and the underlying dynamics of migration flows.

Hugh is a founding member and regular contributor to a number of economics weblogs, including Global Economy Matters, Demography Matters and a number of others.

Edward 'the bonobo' Hugh is a Catalan economist of British extraction based in Barcelona. By inclination he is a macro economist, but his obsession with trying to understand the economic impact of demographic changes has often taken him far from home, off and away from the more tranquil and placid pastures of the dismal science, into the bracken and thicket of demography, anthropology, biology, sociology and systems theory. All of which has lead him to ask himself whether Thomas Wolfe was not in fact right when he asserted that the fact of the matter is "you can never go home again". He is currently working on a book with the provisional working title "Population, the Ultimate Non-renewable Resource".

Edward also writes regularly for the demography blog Demography Matters. He also contributes to the Indian Economy blog . His personal weblog is Bonobo Land . Edward's website can be found at EdwardHugh.net.

Edward follows in detail the Indian, Italian, Spanish, German and Japanese economies. He also has a more than a passing interest in the economies of Turkey and Brazil and in the emerging economies of Eastern Europe.

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