China's Manufacturing Activity Slowed to 2-Year Low in November

Forex News

Increased trade tension between the US and China continues to influence the world’s second largest economy. Growth of the China's manufacturing sector stalled for the first time in over two years in November, amid slowing of new orders growth. The new orders sub-index, an indicator of future activity, declined to 50.4 from 50.8, with export orders shrinking for a sixth straight month.

The National Bureau of Statistics (NBS) reported, that the official Purchasing Managers' Index (PMI) fell to 50 in November, down from 50.2 in October. The indicator was the weakest in 28 months. Economists had expected the figure to remain at 50.2 level.

A separate report showed that growth in China's service sector moderated in November, but remained at solid levels. The official non-manufacturing Purchasing Managers' Index (PMI) fell to 53.4 in November from 53.9 in October, with overall business confidence falling to 54.2 from 56.4 in October.

China’s economy has already slowed amid trade dispute with the US. Some analysts believe that the China’s GDP will slow to 6% in 2019, the weakest expansion the country has seen in nearly 30 years. Still, China’s government expects to hit its official growth target of around 6.5% this year.