China factory gauge slips to 6-month low

Beijing

A CHINESE factory gauge fell to a six- month low in November, adding to signs that broader stimulus is needed to halt a slowdown in the world's second-largest economy. The preliminary Purchasing Managers' Index from HSBC Holdings and Markit Economics was at 50.0, below the median estimate of 50.2 in a Bloomberg News survey and lower than last month's 50.4. Numbers above 50 indicate expansion.

Following readings that showed fixed- asset investment in the first 10 months has expanded the least since 2001 and credit growth weakened last month, the manufacturing report suggests that targeted monetary easing is failing to boost growth, raising the prospect of further policy support.

"It's clear that the effects of targeted easing measures are waning," said Hua Changchun, an economist at Nomura Holdings in Hong Kong. "It's quite obvious that the central bank should cut the RRR," he added, referring to the reserve ratio requirement fo…