Chinese factory activity contracts at faster pace

|By:, SA News Editor

China's flash manufacturing PMI has tumbled to a seven-month low of 48.3 in February from 49.5 in January and missed consensus of 49.4.

Manufacturing Output Index dropped to 49.2 from 50.8.

The sub-indexes for new orders, new export orders and employment contracted.

"The building-up of disinflationary pressures implies that the underlying momentum for manufacturing growth could be weakening," says HSBC.

The faster contraction of PMI adds to other data that provides a mixed picture for China's economy, although the latest figures may have been hampered by the Chinese New Year.

The Shanghai Composite is -0.2%. (PR)

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This was corrected on 02/20/2014 at 02:27 AM. The reporting periods were misstated.