China's factory activity weakest in more than three years

TOKYO, Dec 1 (KUNA) -- China's manufacturing activity dropped to a 39-month low in November, government data showed Tuesday, as demand at home and overseas remained weak. The official manufacturing Purchasing Managers Index (PMI) fell to 49.6 on a 100-point scale last month, down from 49.8 in October, the National Bureau of Statistics and the China Federation of Logistics and Purchasing said.
The index was below the key 50 percent line for the fourth month in a row, and the lowest since August 2012. A PMI reading above 50 percent indicates growth from the previous month, while a reading below 50 represents contraction in China's manufacturing sector. The PMI is a closely watched by investors as a barometer of China's economic health.
Also on Tuesday, Caixin Media Co. and research firm Markit separately said its own final PMI for November shrank to 48.6, compare to October's final reading of 48.3. But the Caixin PMI fell below 50 for the nine month in a row. The official PMI is weighted towards bigger and state-owned firms, while the Caixin survey focuses more on smaller manufacturers in the private sector.
"Tepid domestic and international demand as well as the usual reduction in production were seen during winter," bureau statistician Zhao Qinghe said in Beijing, according to state-run Xinhua News Agency.
The world's second-largest economy grew 6.9 percent year-on-year in the third quarter, the slowest pace of expansion in more than six years. (end) mk.tg