Flash – Chinese manufacturing activity slows with trade war



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BEIJING (AFP) –

The activity of Chinese factories slowed in September, according to official figures, while the Asian giant's trade war with the United States showed no signs of shortness of breath.

The Purchasing Managers Index (PMI), a key indicator of conditions in factories, stood at 50.8 for the month, up from 51.3 in August, the Bureau said national statistics.

This figure was lower than the reading of 51.2 reported in a Bloomberg News survey of economists.

Although the numbers indicate a slowdown, they remained above the 50-point mark that separates the expansion from the contraction.

A separate manufacturing index, calculated independently by the Caixin media group, also showed deceleration.

"Exports have increasingly weighed on performance, and declining demand has begun to impact business production," said Zhengsheng Zhong, an analyst at Caixin.

"In addition, the employment situation is further aggravated.The downward pressure on the Chinese economy was important."

US President Donald Trump has imposed $ 200 billion of additional tariffs on Chinese products and has promised to continue until the closure of Beijing.

Its latest volley against China, which has responded by increasing its levies, brings to more than $ 250 billion the amount of goods subject to customs duties, about half of US exports from China.

Chinese factories, however, may offer better prospects, with an official non-manufacturing indicator showing an expansion of the sector to 54.9 in September, from 54.2 in August.

© 2018 AFP

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