China’s Economy Slows

Industry Week reports that China’s manufacturing sector declined for a sixth consecutive month in January, suggesting a deepening economic downturn, the China Purchasing Managers Index (PMI) said. The index which measures manufacturing activity nationwide, stood at 42.2 in January and although it is up from 41.2 in December, overall output still contracted. A reading above 50.0 means the manufacturing economy is expanding, a reading below 50 indicates a decline.

The direction of China’s manufacturing sector, which accounts for more than 40% of the economy, reflects the overall direction of the world’s third-largest economy. The slowdown in the Chinese economy — which grew just 9% in 2008 compared with 13% the previous year — has left about 20 million rural migrants unable to find work, the government said. Beijing has acknowledged mass job layoffs were heightening concerns about social unrest.