China’s manufacturing sector continues to shrink

The Caixin China PMI has recorded a tenth straight month of results showing the manufacturing sector continues to slow its output.

MarketWatch reports that the result of 48.2 was the worst since September, and was down from November’s 48.6.

Any result under 50 indicates contraction. The Caixin PMI surveys smaller, privately-owned manufacturers, with the official PMI (released on January 1) taking into account larger, state-owned firms.

"We haven't seen any material improvement in economic momentum," BBVA Research’s Xia Le told MarketWatch.

He Fan of Caixin said that there was a chance that the Chinese economy could slump further.

“The government needs to pay more attention to external risk factors in the short term and fine-tune macroeconomic policies accordingly so the economy does not fall off a cliff,” He said in a statement.

The result follows a sub-50 result in the official rate of 49.7.

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