China manufacturing slows as downturn deepens

China's manufacturing activity contracted sharply in November as a downturn in the world's fourth-largest economy worsened, raising the threat of politically volatile job losses, according to data reported Monday. Also Monday, the government lifted food price controls imposed earlier in the year to cool high inflation. The move highlighted the speed with which Beijing has had to shift focus from surging prices to falling growth. The purchasing managers index, which measures new orders and other factors, fell to 38.8 in November on a 100-point scale where a number below 50 indicates manufacturing activity is shrinking, the China Federation of Logistics and Purchasing said. That was down from November's 44.6 and the lowest level since the survey started in 2005. President Hu Jintao told Communist Party leaders in a weekend... [read full story]