Sunday, November 30, 2008

Yuan Watch : Faster deterioration

By Nipa Piboontanasawat

Dec. 1 (Bloomberg) -- China’s manufacturing contracted by the most on record and export orders slumped as a slowdown in the world’s fourth-biggest economy deepened.

The Purchasing Managers’ Index fell to a seasonally adjusted 38.8 in November from 44.6 in October, the China Federation of Logistics and Purchasing said today in an e- mailed statement.

China’s economy is deteriorating more quickly than expected by the nation’s top planning agency, its chairman, Zhang Ping, said last week. The situation is a test of the Communist Party’s ability to govern, President Hu Jintao said Nov. 29, according to the official Xinhua News Agency.

“November’s PMI shows further signs of an economic slowdown,” Zhang Liqun, a senior research fellow at the State Council’s Development Research Center, said in the statement. Government efforts to revive growth “still need some time to show their full effect, which will be after spring 2009,” Zhang said.

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