Survey: China manufacturing falls to 8-month low

AP News
Posted: Mar 23, 2014 10:50 PM

HONG KONG (AP) — A survey says China's manufacturing fell to an eight-month low in March in yet another sign of slowing growth in the world's No. 2 economy.

The preliminary version of HSBC's purchasing managers' index released Monday fell to 48.1 from February's 48.5. The index is based on a 100-point scale on which readings above 50 indicate expansion.

Factory output shrank at the fastest pace in 18 months.

HSBC chief China economist Qu Hongbin said the latest report "suggests China's growth momentum continued to slow down."

China's economy has been slowing as the government tries to reduce reliance on investment and encourage growth based on domestic consumption.

The report is based on 85-90 percent of responses from 420 factories. The final report is due April 1.