File photo: A building under construction is seen in fog in Rizhao, Shandong province
Beijing:
China's manufacturing growth fell to an eight-month low in February, official figures showed on Saturday, in a further sign of the flagging strength of the world's second-biggest economy.
The purchasing managers' index (PMI) tumbled to 50.2, the National Bureau of Statistics reported on its website, in the third straight drop from 50.5 in January, 51.0 in December and 51.4 in November.
A figure over 50 indicates expansion while one below shows contraction.
This marked China's 17th consecutive month of manufacturing growth but at a slowing rate -- the lowest since a June reading of 50.1.
China's economic growth has weakened in recent years, hitting 7.7 percent in 2013 and the year before, the lowest level since 1999.
Analysts expect a further drop to 7.5 percent this year, and the government, which typically sets conservative expectations, has set the same target.
Economists' lowered forecast comes as Beijing has pledged to reform the country's growth model so that consumers and other private actors play a more significant role, rather than massive and often wasteful state investment.
Whereas in the past authorities have reacted quickly to inject cash to stimulate a slowing economy, recently they have remained tight-fisted instead.
Two liquidity crunches occurred last year in part because officials sought to impose stricter discipline over banks amid burgeoning debt levels.
In another closely watched indicator of Chinese manufacturing, British banking giant HSBC said last week its preliminary PMI reading for February dropped to a seven-month low, to 48.3, down from a final figure for January of 49.5.
HSBC is set to release its final PMI reading for February on Monday.
The purchasing managers' index (PMI) tumbled to 50.2, the National Bureau of Statistics reported on its website, in the third straight drop from 50.5 in January, 51.0 in December and 51.4 in November.
A figure over 50 indicates expansion while one below shows contraction.
This marked China's 17th consecutive month of manufacturing growth but at a slowing rate -- the lowest since a June reading of 50.1.
China's economic growth has weakened in recent years, hitting 7.7 percent in 2013 and the year before, the lowest level since 1999.
Analysts expect a further drop to 7.5 percent this year, and the government, which typically sets conservative expectations, has set the same target.
Economists' lowered forecast comes as Beijing has pledged to reform the country's growth model so that consumers and other private actors play a more significant role, rather than massive and often wasteful state investment.
Whereas in the past authorities have reacted quickly to inject cash to stimulate a slowing economy, recently they have remained tight-fisted instead.
Two liquidity crunches occurred last year in part because officials sought to impose stricter discipline over banks amid burgeoning debt levels.
In another closely watched indicator of Chinese manufacturing, British banking giant HSBC said last week its preliminary PMI reading for February dropped to a seven-month low, to 48.3, down from a final figure for January of 49.5.
HSBC is set to release its final PMI reading for February on Monday.
Track Latest News Live on NDTV.com and get news updates from India and around the world
