Chinese manufacturing falls to 11 month low
Fears over the Chinese economy are deepening.
Concerns over the state of the Chinese economy have deepened after the country's manufacturing industry saw its activity fall to its lowest level in almost a year.
The 11-month low for the sector – revealed by a preliminary survey by HSBC – will fuel worries the growth of the Chinese economy is set to slow down further, affecting global markets.
Zhiwei Zhang, an economist with Nomura, said: "The fall in the index is in line with our view of growth momentum fading further in the coming quarters".
Hongbin Qu, chief economist for China at HSBC, explained weaker new orders can help to explain the slowdown in activity in the manufacturing sector in the Asian nation.
Data released recently showed that the world's second biggest economy grew by 7.5 per cent in the second quarter compared to the previous year, which is also down from 7.7 per cent in the January to March period.
This latest data about the manufacturing industry could fuel further concerns that economic growth will continue to slow down in the coming months.
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