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'Slump' in manufacturing sector may cause China to record weakest growth rate in 10 years

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ANI Beijing
Last Updated : Dec 01 2014 | 3:01 PM IST

China's economy grew at its slowest since the depth of the global financial crisis in the third quarter and is likely to record its weakest annual growth rate in more than 10 years with official data showing a moderation in growth of its manufacturing sector. It suggested that a slump in business sentiment accompanied a slow economic growth, a report said.

The manufacturing purchasing manager's index (PMI), a key measure of factory activity in China, stopped at 50.3 in November and recorded a 0.5 percent fall from October, reported Xinhua.

The figures were released by the National Bureau of Statistics (NBS) and the China Federation of Logistics and Purchasing.

While a reading above 50 indicates expansion, a reading below 50 shows contraction.

NBS analyst Zhao Qinghe said that although the index has fallen slightly, it managed to remain above the boom-bust line, suggesting that the manufacturing sector was expanding generally.

Amid the sub-indices, the production index stopped at 52.5 and saw a 0.6 percent decline from October. While the new orders index slipped by 0.7 percent to 50.9, employment index saw a 0.2 percent fall and posted at 48.2.

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First Published: Dec 01 2014 | 2:41 PM IST

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