Chinese manufacturing shrinks in Dec

Chinas manufacturing shrank for a third month in December as export demand fell,suggesting an economic slump is worsening despite government efforts to shield the country from global turmoil,according to data reported Sunday.

A key indicator,the Purchasing Managers Index,edged up from November8217;s all-time low but stood at 41.2,below the 50 level that shows activity is shrinking,the government-sanctioned China Federation of Logistics and Purchasing said.

Manufacturing is about 40 percent of China8217;s economic output,and a drop in demand for its exports has triggered thousands of factory closures. That has prompted protests by laid-off workers,and communist leaders worry more job losses could fuel unrest.