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China's PMI falls below 40% in November

(Xinhua)
Updated: 2008-12-01 11:15

BEIJING -- The Purchasing Managers' Index (PMI) of China's manufacturing sector dropped to 38.8 percent in November, down 5.8 percentage points from October, China Federation of Logistics and Purchasing (CFLP) told Xinhua on Monday.

It was the index's lowest point since the CFLP initiated the survey with China's National Bureau of Statistics in 2005.

Related readings:  PMI indicates further economic slowdown  October PMI falls to record low of 45.2

It was also the fourth time China's PMI declined below 50 percent within this year, which reflected the country's economy had further contracted, analysts said.

The PMI included a package of indices used to measure a country's monthly economic performance. China's PMI was conducted on the base of surveys directed at purchasing and supply managers of more than 700 manufacturers across the country.

A reading above 50 percent suggests expansion, while one below 50 percent rings alarm for economic slowdown.

Index measuring new orders dropped to 32.3 percent in November, down 9.4 percentage points from October. That of new orders for export eased to 29 percent, trimming 12.4 percentage points from the previous month.