Chinese manufacturing shrinks as export demand falls

China’s manufacturing shrank for a third month in December as export demand fell, suggesting an economic slump is worsening despite government efforts to shield the country from global turmoil, according to data reported yesterday.

A key indicator, the Purchasing Managers Index, edged up from November’s all-time low but stood at 41.2, below the 50 level that shows activity is shrinking, the government-sanctioned China Federation of Logistics and Purchasing said.