China’s factories are faltering again, pointing to slowing growth in the world’s second-biggest economy.
HSBC said Thursday that its “flash” index of manufacturing purchasing managers’ sentiment fell to a nine-month low of 48.3 in June, as new export orders dropped sharply and production contracted for the first time in eight months.
Slower growth in China’s vast manufacturing sector, seen as an economic bellwether, could raise pressure on the country’s central bank to try to stimulate the economy even as it tries to contain an explosion of credit.
The factory report was much weaker than analysts were expecting and reinforces concern that second quarter growth in China will slow from the 7.7% rate seen in the first three months of the year.
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