China manufacturing growth slows
Source: BI-ME with AFP , Author: Posted by BI-ME staff
Posted: Fri June 1, 2012 10:51 am

INTERNATIONAL. China's manufacturing activity grew at a markedly lower rate in May, official data showed Friday, providing further confirmation that the world's number two economy is slowing rapidly.
 
The official purchasing managers index (PMI) fell to 50.4 from 53.3 in April, the China Federation of Logistics and Purchasing said in a statement.
 
A reading above 50 indicates expansion, while a reading below 50 suggests contraction.
 
While the figure marked the sixth consecutive month of expansion, it was below market expectations. Economists had predicted it would come in at 51.5, according to Dow Jones Newswires.
 
"The rather sharp decline in the May PMI accords with the trend of economic slowdown," Zhang Liqun, an analyst with the federation, said in a statement.
 
An index for new orders also issued by the federation on Friday was down sharply, dipping to 49.8 in May from 54.5 in the previous month.
 
"Based on this, we can expect that enterprises will operate at an even slower rate in the future, and economic growth may continue to decline," Zhang said.
 
China's export-driven economy has begun to slow this year, with growth falling to 8.1% in the first quarter from 9.2% in 2011, as woes in key export markets such as Europe and the United States hit its overseas sales.
 
Concerns over growth intensified after April data showed industrial production, imports, exports, fixed-asset investment and bank lending all grew at a slower rate than expected.
 
Beijing has lowered the amount of money that banks are required to hold in their coffers, and economists predict more measures to come.
 
British banking giant HSBC last week issued its own PMI index, with its preliminary reading of trends in May, suggesting that manufacturing contracted for the seventh consecutive month as exports deteriorated.
 
HSBC's manufacturing figures typically paint a bleaker picture than China's official numbers.
 
The HSBC survey puts more emphasis on smaller companies, which are suffering more in the economic downturn than state-owned giants.

 

MIDDLE EAST BUSINESS COMMENT & ANALYSIS

date:Posted: February 7, 2016
UAE. On a city wide basis, capital appreciation since 2009 has been a mere 16%, whereas the total returns including rent during the same period have been close to 70%.
date:Posted: February 7, 2016
UAE. The markets are looking for help as the US economy joins the pack with weaker than expected growth; Dollar weakness provides relief for Asia.
date:Posted: February 7, 2016
INTERNATIONAL. At the core of Iranian efforts to become a global sports and airline hub will be its willingness to relax strict gender segregation, dress codes and its ban on alcohol.
dhgate
Monogram Ring