Manufacturing Growth Rate in China Drops in October

Manufacturing Growth Rate in China Drops in OctoberThe growth of manufacturing in China had revealed a very sluggish pace in October. The government of the second-largest economy of the world says that this rate of expansion was the slowest pace in the last five years.

A survey released on Saturday revealed that the manufacturing growth of China dropped further in October as a result of slowing economy and weaker demands in the global market.

The purchasing managers' index of China Federation of Logistics and Purchasing fell by 0.3 as compared to September and reached 50.8. The index is a measurement with a 100 point scale where any number that surpasses 50 signals towards an expansion in manufacturing.

The slow down mirrors a reduced rate in the economic growth of the nation to a five-year low which is at 7.3 percent in the third quarter in the current year.

Zhang Liqun, a Federation analyst said in a report, "The small decline in the October PMI figure shows that economic growth still faces a certain amount of downward pressure."

Zhang mentioned that the new policies chalked out by the government for stabilizing growth which were unveiled during the third quarter already were showing to have their effect in the real economy. He said they will also start to have an impact on the PMI figures very soon.