Chinese PMI down to 51.2 in June

Discussion in 'Economics' started by ASusilovic, Aug 1, 2010.

  1. Aug. 1 (Bloomberg) -- China’s manufacturing grew at the slowest pace in 17 months in July as the government clamped down on property speculation and investment in energy-intensive and polluting factories.

    The Purchasing Managers’ Index fell to 51.2 from 52.1 in June, the Federation of Logistics and Purchasing said on its website today. That was less than the median forecast of 51.4 in a Bloomberg News survey of 15 economists. A reading above 50 shows an expansion.

    A deeper Chinese slowdown could weaken a global recovery already constrained by the debt burdens and unemployment of advanced economies. While growth is cooling, China’s full-year expansion may be as much as 9.5 percent, up from 9.1 percent in 2009, State Council researcher Zhang Liqun said today.

    “The Chinese economy is slowing down mainly due to the ongoing property tightening measures,” said Lu Ting, a Hong Kong-based economist at Bank of America-Merrill Lynch. “Beijing will surely ramp up spending on public housing and other public works to stabilize growth.”

    The U.S. economy, the world’s biggest, grew at a slower pace in the second quarter as unemployment capped consumer spending, the government reported July 30. From the U.K. to Japan, government efforts to cut debt may weigh on demand after stimulus spending revived the global economy.

    Heavy Industry

    Today’s PMI was the lowest since China’s manufacturing stopped contracting in March 2009. An output index fell to 52.7 from 55.8 in June. A measure of new orders slid to 50.9 from 52.1. An export-order index fell for a third month, dropping to 51.2 from 51.7.

    Of 11 sub-indexes, only the measure of employment gained, climbing to 52.2 from 50.6.

    http://noir.bloomberg.com/apps/news?pid=20601087&sid=a8hYpvp6aFho&pos=1