China suffers further fall

CHINA's manufacturing output shrank for a third straight month in December as export demand fell, suggesting a government effort to shield the economy from global turmoil is failing.

The Purchasing Managers Index stood at 41.2 points – below the 50 level, which indicates zero growth, the China Federation of Logistics and Purchasing said.

Manufacturing is about 40 per cent of China's economic output, with the drop in demand triggering thousands of factory closures.