Chinese economy growth slows down
Index defines the activity in China's manufacturing sector unexpectedly fell to a three-month low and was 50.5. The fall is due to reduced market activity and a decreased output. This indicates the instability of the second largest economy in the world, according to Bloomberg.
In November manufacturing PMI made 50.8 although Bloomberg analysts predicted rise to 50.9 points. The index above 50 points indicates growth in the sector.
China's authorities warn that the national economy is currently showing a slow-down trend. Reduced activity in the manufacturing sector is associated with large domestic debt and excess capacity.
The chief economist at Credit Agricole CIB branch in Hong Kong, Dariusz Kowalczyk predicts the fall of GDP down to 7.2% by 2014 against 7.7% growth in 2013.
