China manufacturing sector records the weakest growth in more than two years

30 Nov 2018 02:09 PM

China manufacturing sector growth records the weakest growth in more than two years in November as new orders slowed, adding to pressure on China ahead of crucial trade talks between President Xi Jinping and Donald Trump during the G20 summit.

If high-risk negotiations fail, Trump is widely expected to present a sharp rise in tariffs on Chinese goods in January, which will further strain the Chinese economy and increase risks to global growth.

Factory activity reading on Friday suggests a series of stimulus measures in recent months have yet to materialize, raising the view that China's working conditions will likely worsen before they improve.

Official purchasing managers' index issued by the National Bureau of Statistics fell to 50 in November, losing market expectations and fell from 50.2 in October. The weakest reading was in 28 months.

Reuters Analysts polled had expected a slight change from already marginal growth levels in October. The 50-point mark is neutral, signaling a lack of expansion in activity or deflation on a monthly basis.

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