Lower Chinese manufacturing figures

Lower Chinese manufacturing figures

According to estimates of HSBC Bank there is a sharp decline in Chinese manufacturing in November

HSBC China Manufacturing Purchasing Managers Index fell in November (as against October) from 51 to 48 points. Below 50 points means contraction.

If the real figures follow this estimate based on a survey of 85% to 90% of Purchasing Managers Chinese government policy might shift to new growth measures in order to keep the high levels of manufacturing.

Also the overheated real estate and construction market shows some declines. Sales of residential real estate fell in October against October 2010 by 11.6% and construction activities seem to ease in China.

According to Wall Street Journal also the textile business is decreasing markedly. The newspaper cites the manager of a textile company from Anhui province who notes a fall of 50% in orders compared to 2010 and this was leading to a considerable shed of personnel from over a 1000 employees a few years ago to around 250 actually. The company is operating at less than 30% of its capacity.

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