The Nation Newspaper

Tag: growth

  • Eurozone manufacturing growth remains ‘meagre’

    Eurozone manufacturing growth remained “meagre” in January as factories slashed prices at the fastest rate since mid-2013, a survey has said.

    The latest Markit/CIPS eurozone Purchasing Managers’ Index (PMI) rose to 51 in January from 50.6 in December.

    Although this was only just above the 50 mark, which indicates growth, it was the strongest figure for six months.

    Eurozone manufacturers are facing a duel problem of weak domestic demand and export performance, Markit said.

    Official data showed deflation in the eurozone deepened in January with prices falling 0.6 per cent in the month compared with a year earlier.

    Markit’s survey found the falling price of oil drove average manufacturing costs down at the fastest pace for five-and-a-half years.

    Lower cost pressures were partly reflected in average selling prices. Output charges fell for the fifth month in a row and registered the biggest fall for more than a year and a half.

    The survey was carried out before the European Central Bank (ECB) announced its €1.1trillion (£820billion) bond buying programme, which Markit’s chief economist Chris Williamson, said should boost business and consumer confidence in the eurozone and weaken the euro further, helping to boost exports.

    The single currency has already fallen more than six per cent versus the US dollar since the start of the year.

    Mr Williamson said: “Eurozone manufacturing showed signs of pulling out of the doldrums at the start of the year, but the rate of expansion remained disappointingly meagre, vindicating the ECB’s decision to take drastic action to revive the economy.

    “The currency’s fall should benefit exporting manufacturers in particular over coming months.” Lower oil prices will also help reduce manufacturers’ costs, with reduced fuel costs also freeing up more consumer income to spend on goods.”

    Markit said improvements in business conditions were seen in Germany, Spain, the Netherlands and Ireland during January.

    But this was offset by manufacturing downturns in France, Italy, Austria and Greece.

    The rates of contraction in France and Italy stabilised, but Austria and Greece registered bigger downturns.

    Italy saw a slight rise in output for the first time since September 2014, and the rate of decline in France was the weakest in the eight months.

    But “the continuing slump in new orders to both nations may act as an ongoing headwind in coming months”, Markit said.

    Data from Germany, Europe’s biggest economy, showed factory growth there was also slower than previously thought.

  • ‘Nigeria’s growth down 5.5% as oil plunges’

    Economic growth in Nigeria, Africa’s biggest crude producer, is projected to slow to 5.5 per cent this year after oil prices plunged, the National Bureau of Statistics (NBS) said at the weekend.

    Gross Domestic Product (GDP) growth is set to decelerate from an estimated 6.2 per cent last year, the NBS said in a report on its website. The economy is forecast to expand 5.8 per cent next year and in 2017.

    “The decline in crude oil prices is a downside to the economy in both the short and medium term. The crude oil price shocks, the resulting declining government expenditure and its multiplier effects are likely to impact businesses,” NBS said.

    Oil prices have plunged more than 50 per cent since June, curbing export revenue in the country, forcing the government to cut back on spending and prompting the central bank to devalue the naira as foreign-currency reserves slumped.

    The weaker currency will probably boost inflation to an average 8.8 per cent this year from 8.1 per cent last year, NBS said. It’s set to reach an average of 8.1 percent in 2016 and 7.5 per cent in 2017.

    The naira has slumped 13 per cent against the dollar on the interbank market in the past three months, the most among 24 African countries tracked by Bloomberg.

    Finance Minister Dr Ngozi Okonjo-Iweala last month proposed cutting this year’s budget by eight per cent and reduced its benchmark oil price to $65 a barrel from last year’s $77.50 a barrel in the face of tumbling crude prices.

  • So close to city, so far from growth

    So close to city, so far from growth

    Dape community is about 15km drive from the Central Business District. That means pretty little to its over 4,000 residents. Why? They lack almost everything they need. There is no health facility. Nor is there water fit for drinking.

    That is not all. There is no police post either. Until 2013, Dape had no primary school, let any institution higher than that. The primary school, which came in 2013 being the only evidence of government presence in the district, has just one block of three classrooms.

    After its opening of on November 1, 2013, the pupils have been studying under the worst possible conditions. The school boasts neither toilet facilities nor a fence. Primary1 pupils have no classroom. Primary Four, Five and Six pupils make do with a single classroom. One more room accommodates two other classes, while crèche kids occupy the third room.

    When Abuja Review visited the school, a teacher was busy instructing pupils on the corridor of one of the classrooms. The children sat on benches while their teacher scrawled away on a make-shift board held in by some wooden materials. Apparently, if there were to be a giant tree in the school environment, the pupils would have opted for it.

    It was gathered that efforts were made by the Head Teacher, LEA Primary School, Dape, Mrs. Martha Aboki-Zhawa and the Parent Teacher Association (PTA) before a few seats were acquired.

    During another visit to the community, the residents appealed to the Abuja Municipal Area Council (AMAC) for help. The residents, through their traditional ruler, Chief James Ibrahim Diko, said he made several efforts to draw the attention of the authorities to the needs of his people. While help tarried, the community head built another block of two classrooms, using whatever resources he could find.

    A section of the uncompleted classrooms fell due to paucity of funds and materials. Diko said he had solicited support from the Senator representing Federal Capital Territory, Senator Philip Adudah but no result yet. He emphasised that if the government could not provide anything else, it should at least, support the community with school infrastructures to protect the pupils, especially during learning hours.

    “I took over as traditional ruler of Dape District barely seven years ago but there was nothing to show as government presence. So I had to rise up to the challenges and did some follow-ups. An English adage says the mouth that closes is the one that smells. As you can see, we got connected to power barely three years ago. By the grace of God, we have just three classrooms for the school, which is not enough for our population. That is the only government presence here.

    “I applied for pipe-borne water, no response yet, so it’s an individual that is running the business.  applied for health centre, no answer yet. I applied for a police post, I had to start building it myself; it is barely at the roof level now. We have just a single transformer so I wrote to Senator Philip Adudah to support the community with another.”

    The traditional ruler continued, “Basically, education is the bedrock for socio-economic development of any nation. Without education no society can develop and you won’t have communicated with me. By the time you have that knowledge, you will be able to analyse, ascertain and address groups of people or individuals.

    “So I plead to government to add more to the block of classrooms and fence the school. That is the most important priority because ofthe security challenges in the country.

    Others can then follow. We can evenassist government as I’m doing. I was building two blocks but because offinance problem, I could not complete it and one side fell. I’m trying my bestto assist the government so government can also assist us.”  “Presently, there is no health centre here. It’s either we go to Gwarinpa General Hospital or private hospitals. There is no government borehole or tap. What you see here are boreholes run by individuals,” he added.

    The head teacher emphasised the need for more classrooms. As for her, there is urgent need to address the situation considering the increasing population of the pupils. She lamented lack of toilet facilities, perimeter fencing and security measures to protect both teachers and pupils. Although, efforts were made to the AMAC Education Secretariat, through the Secretariat Head of Department (HOD) for Works described as Mr. Shedrack. However, likely interventions were promised for the school in 2014 to be implemented this year.     “I was in LEA, Jabi when transfer came with promotion to head this school. When I came in,

    there was no single infrastructure. There was no teacher, no chair, no desks even teachers’ desk. I was only managing it the way I could. I had to employ three teachers paying them through my salary. If they pay me, I will pay them until last year second term, they gave me two teachers from LEA and two from federal teachers. “I have written twice to the education secretary through the HOD, Works and they promised to do something but we are still waiting. The benchand desks

    were provided by personal efforts and the PTA,” Aboki-Zhawa.

    Master Taiwo Basset, a Primary Six pupil expressed dissatisfaction over lack of toilet facilities in the school. Little Basset said it was unhygienic for the school to run without toilet facilities. “We need toilets and classes and teachers because we are just managing here,” he solicited.

    In a lighter mood, the traditional ruler urged residents to observe traditions of the community. As for him, civilisation has eroded someof the norms and value systems. “Years then, our fathers do have festivals theydo celebrate annually. Like Kakaje, Mamaje, Aboli even Jimaje and the rest butdue to civilisation, youths don’t even like to engage in them. I don’t know whymaybe they think they are advanced or civilised.”

    However, the onlyrepercussion as observed by the district head is the production of low harvest. Otherwise, farmers who observe the festival do have bountiful proceeds. When Abuja Review contacted LEA AMAC Education Secretary,Mrs. Grace Adayilo, she expressed commitment to attend to the situation, addingthat it would take a gradual process to meet all the need. She said the school was newly established to ensure everycommunity in the territory has a primary school.”The school is new and Rome was never built in a day. We created the school to relieve children from going to karmo. We have almost 150primary schools in AMAC and before I came in, it was 140. We even thank God there is a structure there. It is the commitment of the

    authorities to ensureall communities have a school of their own. “Aside, I am not in in charge of capital projects. It is only Universal Basic Education Commission (UBEC) that is in charge,” Adayilo added.

  • ‘Fast-track title deeds issuance to aid agric growth’

    ‘Fast-track title deeds issuance to aid agric growth’

    The  Federal Government has been urged  to hasten the process of issuing of title deeds and formulate regulations to promote agricultural   investments and economic growth.

    The  Director, Africa Region,  Cassava Adding Value to Africa, Prof Kola  Adebayo, said there was  need  to  restore   sanity within  the  system  to activate agro  business growth.

    He   said delays in the issuance of titles led  to loss of business opportunities for citizens and private sector players.

    According to him,  mega food  processing  investment projects, within  the  sector   need to be guided by investment regulations, adding  that  delays in issuance of land title deeds  result in delays   in the execution of  such  projects.

    He said land owners of large companies and farms suffer a lot   owing to the incessant disputes between such  organisations  and the  communities, urging  the  government  to step into the  situation in the interest  of  agriculture.

    He  stressed that land is the chief, primary input in all agricultural production.

    With  the demands the  population is placing on land resources, the  expert  said  there  is  need  for  the  government  to think about the most effective ways to organise land ownership and use  to  boost food security.

    When land users feel secure that their land will belong to them as long as they wish to keep it, that it will not be arbitrarily seized by other land-using groups, or forced out of agricultural use by encroaching development, then, they   more likely to invest in the long-term development .

    For the  government ‘s  agricultural expansion  dream   to become a reality,he  emphasised  that smallholders’ rights to own and transfer land must be secured so that they can either be officially incorporated into agricultural development schemes .

    He blamed the emergence of the cartels on past poor regulation and lack of awareness by the farmers.

    Adebayo  said the need to ensure the interests of the  farmers are well protected against exploitation by middlemen and brokers as   trade malpractices,  have   led to price distortion and market segmentation thus barring entry of new players who are ready to offer  prices.

    He said the majority of the cartel groups are to blame for the rampant smuggling of the commodities across the borders, leading to loss of billions of money to the government and farmers.

    Also, in some industries the cartel groups are cheating farmers to enter into dubious contracts a few months after planting and before harvesting. Through the suspicious contracts, he said growers were cheated to dispose of their produce.

    The farmers, he added, were forced to grow the crops on behalf of the traders and after harvest, the grower had nothing to celebrate.

    This, according to him, has denied the growers full ownership of the crop and equally limit his chances of earning more from produce, thus leading to grinding poverty and under development.

    The cartels, he  noted,  trigger artificial shortage of commodities in the local market so that they can exploit  farmers through inflated prices and force government and other value chain players to import.

    He  called  on the government to improve the distribution and storage structure  and  to set up marketing  boards  to  assist farmers buy up their produce.

  • Internet skills vital to MSMEs’ growth, says group

    Internet skills vital to MSMEs’ growth, says group

    Computer Warehouse Group (CWG) has said the shift in traditional business to online commerce has made the acquisition of online skill an indispensable tool for Micro, Small and Medium Enterprises (MSMEs).

    Its Head, Marketing Communications, Success Nmerife, who spoke during the maiden edition of a special workshop for MSMEs in Lagos, said the workshop was designed to introduce them to solutions and methods they could employ to maximise the benefits that the internet affords in growing their business.

    According to her, the paradigm shift in the global focus from traditional business model to online commerce has made the utilisation of the electronic platfrom in business promotion and sales an indispensable tool for merchants.

    The free online technology workshop had Learn How to Set-up, Operate and Advertise Your Own Store Online aimed at equipping business owners with the skills they require to take their business to the online community by operating an online store and selling to people other than those in their immediate physical community.

    Speaking at the event, Business Manager, Openshopen, Adriana De la Cruz Duffo, said Openshopen has been uniquely designed to respond to the challenges of online trading encountered by MSMEs in the Nigerian business environment.

    She said: “Openshopen is easy to use, cheap and profitable. It addresses the fears of payment gateway security. It also takes care of the logistics of delivery. It is a platform you as merchants can adopt, if you want your business to grow.”

    During the workshop, merchants were taken through three training sessions. In the first session, Head, Innovation, CWG, Mr. Tayo Oduwole, introduced the Openshopen online platform to the participants. He said: “CWG’s partnership with Openshopen to introduce the eCommerce platform is in line with our vision to enable Nigerian merchants acquire business enabling technology without incurring business killing own-infrastructure costs”.

    He said Openshopen differs from other online shopping platforms in that it allows merchants sell directly to buyers and have the privilege of promoting their brands. Unlike other platforms that require merchants to submit their wares for sale. “With Openshopen, you can sell your brand alongside your products, such that people can look for you if they want your products again,” he added.

    Mr. Oduwole took participants through step by step procedure of opening a store online with the privilege of creating their own store, each having their unique web address, corporate logo and products for display. Partcipants were taught the basics of promoting their business using various social media platforms.

    Chief Technology Officer, CWG, Mr. James Agada, who presented certificates to participants at the workshop, said the workshop served as one of CWG’s ways of contributing towards the growth of SMEs in the country, creating employment and contributing to the growth of the nation’s economy. He urged the participants to utilise the knowledge they have acquired from the workshop.

    The participants expressed their gratitude to CWG for the privilege of the workshop. Most of the attendees indicated that the workshop has been of immense benefit to them. Commenting on the workshop, Mr. and Mrs. Yemi Adeyemo, Directors at House of Treasures, observed “In fact, the workshop was worth the while, the lectures were extensive and the speakers were very good. We have learnt a lot that we will like to put them into use as soon as we get back home.”

  • Path to democratic growth, by Swedish envoy

    Path to democratic growth, by Swedish envoy

    Swedish Ambassador to Ghana and Nigeria Mr. Svante Kilander has said democracy would thrive when those elected work and meet the yearnings of the citizens.

    Kilander spoke while delivering the 50th anniversary lecture of the Department of Sociology, University of Ibadan, titled: “Breakthrough of Democracy in Sweden: A Perspective.”

    He noted that elections provide people with the opportunity to replace public officers, who failed to serve them, urging Nigerians to learn from his country.

    Kilander explained that democracy would succeed, where democratic institutions are put in place and manned by trusted people, who meet the needs of the people.

    The envoy said people should wait for those who did not meet their expectations and vote them out at elections.

    According to him, elections provide a platform to deepen democratic ethics and ethos by allowing people to rearrange and replace public office holders, who failed to meet their expectations.

    He stressed the need for those occupying public offices to work for their people.

    Kilander congratulated Nigeria for successfully containing the dreaded Ebola Virus.

    He said the Federal Government and the medical teams did “a great job” to deliver the country from the Ebola spread through well coordinated response teams.

    Head, Sociology Department, University of Ibadan, Prof. Samuel Ayodele Jegede, said the world needs knowledge from Sociology to provide cross-cultural understanding of issues as well as provide new paradigms that could address challenges confronting Nigeria and the world.

    According to the university don, there was the need to annex the skills of experts in sociology to provide a holistic understanding of human society and proffer solutions to problems confronting it.

    The Vice Chancellor, University of Ibadan, Professor Isaac Adewole, said the institution was ready to partner with University of Upsalla, Sweden to establish Ulf Himmestrand Institute of International Development (HIID) to foster intellectual exchanges between Nigeria and Sweden.

    Emeritus Professor Ulf Himmestrand was the first Head of Department of Sociology, Ibadan in 1964.

    The vice chancellor, who noted that that UI was ready to make available part of the money for the establishment of the institute, said the institute will focus on peace-building, international relations and other courses.

  • Fidelity Bank positions SMEs for growth

    Fidelity Bank positions SMEs for growth

    Fidelity Bank Plc has reiterated its commitment to Small and Medium Enterprises (SMEs). Its Managing Director/Chief Executive Officer, Nnamdi Okonkwo who spoke at the Annual SME Conference organised by the bank in Lagos, said there is social impact in banking SMEs.

    The bank chief said  banking SMEs also promotes sustainable business model for the operators and improved relationship banking. “I am not saying that there is anything wrong with banking the corporate. We are very strong in that, remember our history as a merchant bank. But if we don’t bank SMEs, how do we produce the Dangote of tomorrow?  What entrepreneurs need is entrepreneurial zeal, determination and vision. We need more potential Dangotes in this country,” he said.

    He said the bank has been recognised in various ways as the best SME bank. Okonkwo noted that the last three years, the bank has increased its focus on SMEs. He said the lender took the decision because of its economic impact.

    “We see this sector as a critical agent of economic development and transformation in Nigeria.  It is also in line with the federal government’s National Economic Development Programme (NEDP) that was launched by President Goodluck Jonathan earlier this year. No economy can ignore the SMEs,” he added.

    Managing Director, Swift Networks, Charles Anudu, said entrepreneurship is not the easiest way to make money, but is about making life convenient for people.

    He said entrepreneurs need to be patient, have will-power and committed to their goals for such objectives to be achieved.

  • Community relishes peace, growth

    Community relishes peace, growth

    The horrible spell is behind them now and the people can savour a stream of fresh air in their community. Okposi Development Centre in Ebonyi State was once engulfed in crisis no one is happy to remember. Violence descended on it in the form of youth restiveness, kidnapping, looting and murder, among other vices.

    But since Nze Magnus Eze took over as the Centre’s coordinator, his mantra has been peace and growth.

    The former coordinator, the late Ihebunadu Okorie, was kidnapped during a church service in Okposi and later killed by his assailants in a forest at Afikpo South Local Government Area of the state. Over three youths lost their lives as the community gradually became a den of criminals.

    On April 15, Governor Martin Elechi appointed Eze as Okorie’s replacement. Not long after, peace gradually started returning to the ever-busy and hospitable community of Okposi, thereby giving room to various forms of development.

    Now, the community made up of several villages including Amenu, Umunuka, Amechi, Umuka, Umuakuma, Mebi-Ameke, Ameluagu, Mebiowa, Mgbom Enu, Mgbom Ani, Isinkwo, Okposi Achara, Avu/Umuiwa and Okposi Okwu have witnessed the flag-off of a significant road construction work in the area.

    The exercise attracted representatives of the villages and prominent sons and daughters of the community who sang and praised God for the restoration of peace and the new wave of developmental initiatives gaining sway in the community.

    The coordinator who is the founder of a movement: “Mezie Okposi” movement is seen at different forum preaching peace and unity among the three autonomous communities namely Okposi Okwu, Mgbom N’Achara and Okposi even as he stressed that no meaningful development will come to a community where there is reign of terror and war.

    To ensure lasting peace in the area, Magnus Eze had the arduous task of bringing back Okposi people to once again have confidence in government by arresting youth restiveness that ravaged the area.

    So the security of lives and property was a top most priority.

    He was able to institute Security advocacy tour of the 12 villages that make up the DC, set up Enuakwa neighborhood watch, who in partnership with the Police and other security agencies provide security within the DC especially Court Area, the commercial hub of Okposi.

    Then, as part of youth empowerment scheme, he initiated the  training of 15 youths in various skills in partnership with National Directorate of Employment, NDE as part of the DC N10m capacity building and empowerment programme for the youth.

    It is necessary to state that another batch of 38 beneficiaries of Youth Capacity Building and Empowerment Programme was officially inaugurated on October 17, 2014.

    The Development Centre sponsored 15 wrestlers to qualify as state athletes for NAFEST, School Sports and National Sports Festival and paid N2.1m Bursary to 7 students in the  Nigerian Law School.

    It also inaugurated the Attitudinal Change Vanguards for moral rebirth of especially the youth and promoted the Mgba Okposi Festival 2014 (traditional wrestling contest).

    All these initiatives were necessary to redirect the minds of the youths and the entire community towards development and progress instead of violence.

    The 3km Umuakuma Road project which was flagged off by the chairman of Ohaozara Local Government Area, Hon. Enekwachi Akpa was wooed to the state from the Federal Ministry of Agriculture and Rural Development by an Abuja-based  lawyer, legislative consultant and son of the soil, Dr. Eze Anoke

    Dr. Anoke is also the President General of Okposi Community Development Union and Peoples Democratic Party, PDP aspirant for Ohaozara, Onicha and Ivo (Ohanivo) federal constituency of the State in the 2015 general election.

    The road aside serving Umuakuma and Mebiokpa villages will also enable easy evacuation of sand from the Asu River.

    Speaking with The Nation, Dr. Eze Anoke stated that he used his connection at the National Assembly to ensure the road was funded in the 2014 budget and that he will ensure its continuous funding in 2015 budgetary allocation.

    He enjoined the people to see the project as their own and advised the contractors to work according to specifications.

    Responding, the engineer representing the indigenous company, Divine Favour construction company  handling the project, Mr. Matthew Godwin said the company was presently implementing the first phase of the project which would gulp over 200 million as it will be completed on December 31, 2014.

    Chairman of the council, Enekwachi Akpa while flagging off the project, thanked Nze Magnus for the return of peace to the community without which the project will not have commenced.

    He also charged the people to protect the equipments of the contractors and to give them all necessary assurance to ensure that they complete the work on schedule.

  • ‘Lack of plans bane of SMEs’ growth’

    ‘Lack of plans bane of SMEs’ growth’

    The Small and Medium Enterprises (SMEs) sector has the capacity to transform Nigeria into a globally-competitive economy in the mould of China and other Asian Tigers if operators could come up with viable and robust business development plans, Registrar/Chief Executive Officer, Institute of Business Development (IBD), Mr. Paul Ikele, has said.

    According to him, most SME operators in Nigeria have no direction because of lack of business development plan.

    In an exclusive interview with The Nation, Ikele said: “SMEs need to come up with business development plans. Before a company is incorporated, that company should come out with a business development plan. Before you open an account for a limited liability company, you should submit a business development plan so that government will key into it and follow it up. If at any point that business does not achieve its objective, it is quietly withdrawn. By so doing government will be able to identify those people that are performing and those that are not performing.”

    Ikele, former managing director/chief executive officer, Noble Path Finance and Securities Limited and General Manager, Business Development, Olympia Insurance Limited,regretted that most people go into the SME sector because they don’t have an alternative.

    “I can assure you that if you are in SME and you know exactly what you are producing, you already have grown a market share in that particular business; you will be able to identify your key customers and focus on servicing them,” he said.

    He noted that this has not been the case with SME operators in Nigeria where “most SME operators are incompetent personalities, who just want to use it and do other things, and because they know how to get to the sources of that fund they get the money and before you know it they channel it to other areas.”

    He pointed out that most people, who are interested in SMEs are either incompetent or don’t have real intentions in that business. Rather, their intention, he said, is to use that money for other objectives.“This is why the Institute is insisting that every organisation should come out with a business development plan so that it will encourage them to submit at the end of the year the result of the evaluation of their operations,” he said.

    He said before setting up an SME, there was need to engage professionals to draw up the business plan. Also, there is need for an environmental scanning to determine whether that business would survive in that particular area.

    “Businesses that thrive in the south may not thrive in the north, but most SME operators will just go and copy a business plan thinking if you are selling pure water in Lagos, for instance, you can sell it in the north, after all north has a hot weather, he said, insisting that “before you do a business plans, you must do an environmental scanning.”

    The Registrar noted that in countries, such as China, where SMEs were properly directed, with good business development plans, they helped such economies to survive.

    He said Nigeria should borrow a leaf from China, which managed to grow her SME sector first by closing its wall to determine whether they want to survive or not.

    “They (China) live in a cottage system where they can buy and use what they can afford. And again, its better to start business small and grow big, identify your core market requirements within your environment and provide those needs and provide the products and services and ensure that people within that area are able to buy them. Nigeria can apply such model,” he said.

  • China’s manufacturing growth slows again

    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 from from 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 released earlier this month.

    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 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.

    The risk that China might miss its official growth target of 7.5% this year for the first time in 15 years is growing because economic data is weaker than expected, economists said.

    A struggling property market, uneven export growth and cooling domestic demand and investment are some of the major factors weighing on overall growth.

    Alaistair Chan, economist at Moody’s Analytics, said he had expected the slowdown in manufacturing and was a “little more pessimistic” than the market for two reasons.

    “Firstly, there are signs the recent export boom is fading. Meanwhile, the housing market and related sectors such as steel and cement manufacturing, remains in a slump,” Mr Chan said.