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China Factory Activity Keeps Falling in May

China’s manufacturing activity weakened further in June, falling to a nine-month low as demand fell, according to a preliminary survey by HSBC.

The bank’s Purchasing Managers’ Index (PMI) declined to 48.3, from May’s reading of 49.2. A reading below 50 indicates a contraction.

The weak data comes amid fresh concerns over the health of Chinese economy, the world’s second-largest.

Last week, the World Bank lowered its 2013 growth forecast for China.

The bank now expects the China to grow 7.7% this year, down from its earlier projection of 8.4%.

Among the concerns cited by analysts have been fears that a protracted slowdown in key markets such as the US and Europe may hurt demand for Chinese exports and impact its manufacturing sector.

via BBC [1]

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Alfonso Esparza

Alfonso Esparza [6]

Senior Currency Analyst at Market Pulse [7]
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza