The Chinese manufacturing slowed this month, sending new signals possible overall delay of the second force in the world economy. The index fell to 50 deliveries in October – a point that divides contraction of economic activity from the extension. Level is the lowest in the last six months. Last month, final data showed a level of 50.4 points.
The weak price pressures and low capacity utilization are due to insufficient demand in the economy. Furthermore, we will continue to see uncertainty in the months of the real estate market and for exports, commented analysts.
Fighting China this year to meet its growth prompted several changes in government policy, especially in the real estate sector, where the slowdown in housing demand becomes more obvious. In view of the reluctance of politicians to implement a comprehensive package of incentives or major reforms currently China likely to meet its target of growth of 7.5% for the whole 2014 remains just possible.
According to the latest data, Chinese economy grew by only 7.3% yoy in the third quarter – the slowest pace in five years. Quarter earlier expansion was 7.5% and in the first three months of the year – 7.4%. This means that it takes considerable expansion in the period October-December, so that the target of 7.5% can be reached. The economists believe that this scenario is unlikely without further stimulus, especially considering the performance of the real estate sector.
Figures released Tuesday showed that prices of new homes in China fell in 69 of the 70 largest cities in the country last month. The number is the same as a month earlier and emphasizes the impact of limited demand and oversupply after years of global construction boom.