China's Factory Activity Contracts for Second Month Despite Stimulus Measures

Economy still expected to grow at 5% annual pace this year as policy advisors call for stronger stimulus measures.

China's factory activity contracted for a second straight month in November, with the official manufacturing purchasing managers’ index falling to 49.4, down slightly from October’s 49.5.
The index has fallen in seven of the past eight months, with an increase only in September.
The new orders sub-index contracted for a second consecutive month, while two other sub-indices for raw material inventory and employment also were lower.
Despite the contraction, the economy is expected to grow at about a 5% annual pace this year.
China's policy advisors have called for still stronger stimulus measures to revive the economy.