Despite a positive spin by Chinese state media, China’s manufacturing output growth slowed in May, raising further concerns of overheating in key economic metrics.
Asian stock markets reacted negatively to the news on fears that sluggish global demand for Chinese manufactured products in May maybe indicative of a further slowdown in the months ahead.
The official China Federation of Logistics and Purchasing managers index dropped to 53.9, from 55.7. While this still represents growth (for the 12th consecutive month), the rate of growth was below many analysts’ predictions. The official export orders sub-index fell to 53.8 in May, from April’s 54.5. Differing slightly from the official government statistics, the HSBC China Manufacturing Purchasing Managers Index dropped considerably from 55.2 in April to 52.7 in May.
Chinese media said the slower rate of manufacturing output growth showed “that the government’s tightening measures, including a crackdown on the property market, are starting to impact manufacturing activity.”
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Manufacturing Growth Slows in May
Despite a positive spin by Chinese state media, China’s manufacturing output growth slowed in May, raising further concerns of overheating in key economic metrics.
Asian stock markets reacted negatively to the news on fears that sluggish global demand for Chinese manufactured products in May maybe indicative of a further slowdown in the months ahead.
The official China Federation of Logistics and Purchasing managers index dropped to 53.9, from 55.7. While this still represents growth (for the 12th consecutive month), the rate of growth was below many analysts’ predictions. The official export orders sub-index fell to 53.8 in May, from April’s 54.5. Differing slightly from the official government statistics, the HSBC China Manufacturing Purchasing Managers Index dropped considerably from 55.2 in April to 52.7 in May.
Chinese media said the slower rate of manufacturing output growth showed “that the government’s tightening measures, including a crackdown on the property market, are starting to impact manufacturing activity.”
This entry was posted on Thursday, June 24th, 2010 at 12:03 pm and is filed under News commentary. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.