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China factory activity drops to 3-year low

The index for Chinese manufacturing activity dropped to 49.2 in February, its lowest level in three years, amid a trade war with the US.

China's manufacturing activity has dropped to a three-year low in February, amid a prolonged trade war with the United States.

The manufacturing purchasing managers index (PMI) came in at 49.2 in February, sinking from 49.5 in January, official data from the National Bureau of Statistics showed.

The indicator fell below the critical threshold of 50 in December, for the first time in two years. A figure below 50 indicates contraction.

The world's second-largest economy grew 6.6 per cent in 2018, the slowest pace in almost three decades. Economic growth in the fourth quarter of the year slipped to 6.4 per cent under pressure from the trade war.

US President Donald Trump and Chinese President Xi Jinping are negotiating a deal to end the trade war, which so far has seen Washington impose tariffs on $US250 billion worth of Chinese imports and China retaliate.

The US accuses China of forcing companies to hand over their technology, stealing intellectual property and treating foreign firms unfairly.


1 min read

Published

Source: AAP



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