Article taken from: www.theguardian.com
Chinese manufacturing sector declines for first time in 19 months amid new year global growth concerns. Skip to main content The Guardian – Back to home Support The Guardian Contribute Subscribe Contribute Search jobs Sign in My account Comments & replies Public profile Account details Emails & marketing Membership Contributions Digital Pack Sign out Search switch to the International edition switch to the UK edition switch to the US edition switch to the Australia edition current edition: International edition News Opinion Sport Culture Lifestyle Show More News World news UK news Science Cities Global development Football Tech Business Environment Obituaries Opinion The Guardian view Columnists Cartoons Opinion videos Letters Sport Football Rugby union Cricket Tennis Cycling F1 Golf US sports Culture Books Music TV & radio Art & design Film Games Classical Stage Lifestyle Fashion Food Recipes Love & sex Health & fitness Home & garden Women Men Family Travel Money What term do you want to search? Search with google Make a contribution Subscribe International edition switch to the UK edition switch to the US edition switch to the Australia edition Search jobs Dating Holidays Digital Archive The Guardian app Video Podcasts Pictures Newsletters Today’s paper Inside the Guardian The Observer Guardian Weekly Crosswords Facebook Twitter Search jobs Dating Holidays Digital Archive Business Economics Banking Money Markets Project Syndicate B2B More Business live China Stocks start 2019 in retreat as China factory output shrinks – business live
Chinese manufacturing sector declines for first time in 19 months amid new year global growth concerns
Chinese stock markets fell on the first trading day of 2019 after weak manufacturing data Photograph: Ng Han Guan/AP Jasper Jolly
Wed 2 Jan 2019 07.56 GMT
Share on Facebook Share on Twitter Share via Email Key events Show 7.56am GMT 07:56 Introduction: Weak Chinese factory output prompts stock slide Live feed Show 7.56am GMT 07:56
Introduction: Weak Chinese factory output prompts stock slide
Factory workers assemble the cases of air conditioners at a factory in Jiaozhou, eastern China’s Shandong Province. Photograph: Mark Schiefelbein/AP
Happy new year, and welcome to the first business live blog of 2019, with rolling coverage of the world economy, financial markets, the eurozone and business.
Stock markets in Europe are set to start the year as they finished the last one – with a slump – following the lead of Asian markets which were under the cosh.
Shares in Hong Kong fell by 2.7%, while those in Shanghai lose 1.2% and the ASX 200 benchmark closed down 1.6% in Sydney.
The Caixin purchasing managers index (PMI) fell from 50.2 in November to 49.7 in December, below the 50 no-change mark for the first time since May 2017. New orders also fell, for the first time since June 2016.
The data suggest there will be little let-up in the slowdown, according to Freya Beamish, chief Asia economist at Pantheon Macroeconomics:
The report implies deteriorating demand, with production likely to reflect that in coming months. Leading indicators suggest that activity is unlikely to begin a recovery until the second half.
The fall in demand has been at least partly blamed on fears that the trade war between the US and China pursued by US President Donald Trump has started to hurt demand.
However, trade war aside, markets could be boosted following signs that Trump may be willing to finally act to reopen the US government.
Jasper Lawler, head of research at London Capital Group, said: “News that Trump was reaching out to Congress to help end the partial government shutdown, provided some optimism to traders overnight.”
The British and European manufacturing sectors will also be in the spotlight this morning, with PMI figures due this morning. In the UK economists are expecting a slight slowdown from the relatively strong expansion seen in November, when the index hit 53.1 – but for the index to show continued expansion in output.
9am: Eurozone manufacturing PMI 9:30am: UK manufacturing PMI 3pm: US manufacturing PMI
Facebook Twitter Google plus Topics China Business live Chinese economy Economics FTSE Manufacturing data