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China manufacturing falls for fifth month
Bill Condie2 Jan 2009
China's manufacturing sector contracted for a fifth month in December as the global recession dampened demand for its goods.
The CLSA China Purchasing Managers' Index stood at a seasonally adjusted 41.2, compared with a low of 40.9 in November, CLSA Asia-Pacific Markets said.
A reading below 50 reflects a contraction.
Eric Fishwick, head of economic research at CLSA in Singapore, said: "Chinese manufacturing was very weak in December.
"With five back-to-back PMIs signalling contraction, the manufacturing sector, which accounts for 43% of the economy, is close to technical recession."
China's growth is believed to have been 5.5% in the last quarter, the slowest in 15 years, Shanghai-based Industrial Bank said.
The central bank has cut interest rates five times in three months and the government has launched a four trillion yuan (£398 billion) spending package.
Central bank Governor Zhou Xiaochuan has promised to continue a "flexible" monetary policy.
