China's manufacturing growth slows

China's factory activity slowed by more than expected in November, highlighting how a cooling economy is impacting its vast manufacturing sector.

The official purchasing managers' index (PMI) dipped to 50.3 in November from October's 50.8, closer to the 50 point mark that separates growth from contraction.

It was below the 50.6 level expected by economists. Rising costs and falling demand were blamed for the downturn in activity.

Meanwhile, a private survey by HSBC showed that growth in Chinese factories in November stalled as output shrank for the first time in six months.

The final HSBC-Markit manufacturing PMI slipped to a six-month low of 50 in November, down from 50.4 in October. The reading was unchanged from a preliminary 'flash' finding.

Output fell to 49.6, which was the worst reading since May. "Muted growth in new work," led companies to hold back production, HSBC-Markit sources said. Growth in the world's second largest economy fell to 7.3% in the third quarter, which was the slowest pace since the global financial crisis.

- BBC