Prime News: China Feb PMI plummets more than projected

Activity in China’s factory sector tumbled for the seventh consecutive month, plunging more than expected, implying the government should beef up stimulus to avoid a further economic degeneration.

Official figures showed the Purchasing Managers’ Index dropped to 49.0 in February from 49.4 in January, the lowest since November 2011. Industrial profits slipped 2.3% last year following it climbed 3.3% in 2014.

Manufacturing sector has been under fire from weak demand within and outside the country and huge overcapacity in major industries including coal and steel.

China previously said it is planning to axe 1.8 million workers, or around 15% of the workforce, in the said industries. But did not disclose a timetable.

The material has been provided by InstaForex Company – www.instaforex.com