China Nov PMI falls to new low of 40.9 - CLSA.

(From AFX Europe (Focus))

BEIJING (XFN-ASIA) - The China purchasing manufacturers' index fell to a new record low of 40.9 in November as a result of further falls in output, new business and employment as export orders weakened, CLSA said.

The November index was down from 45.2 in October, and marked the fourth consecutive monthly decline.

"Another grim month for China manufacturing and the first in which the weakness in overseas demand overtook what, until now, has been mainly a domestic slowdown," said Eric Fishwick, head of economic research at CLSA.

"Export orders will weaken further and we expect further cuts in production and employment. Costs are plummeting but the benefit to margins is being offset by output price cuts as businesses try to protect market share," Fishwick said.

November's survey revealed record lows in several key areas.

Manufacturing production contracted at the sharpest rate in the survey's history due to lower ...