China’s Manufacturing Continued to Shrink

Manufacturing in China contracted to the lowest points during last 11-month, according to research of influential index by HSBC, a Chinese well-known financial institutions.

It was worse than expected HSBC said.

The preliminary reading of March was 49.2, against 50.7 in February, and versus expectations of 50.5. Any score less than 50 indicate contraction.

Last contraction happened in January, with a reading of 49.7. While the last reading for the official PMI, which came in at 49.9 in February, also pointed to a worsening economy in China.

In response to these problems expert points out that “the renewed fall in total new business contributed to a weaker expansion of output, while companies continued to trim their workforce numbers,” that hints the investment risks.