China Manufacturing Falls to Four Month Low

China has reported a slowdown in growth of its manufacturing sector, underlining concerns that its economic recovery continues to remain fragile.

The official Purchasing Managers’ Index (PMI), a key measure of manufacturing activity, fell to a four-month low of 50.1 in June, from 50.8 in May.

A sub-index of new orders also fell, indicating a weak demand.

The manufacturing and export sectors have been key drivers of China’s economic growth in recent years.

However, they have been under pressure lately amid a slowdown in key export markets as well as China’s own economic growth.

“The June PMI fall, across the board on major sub-indexes, indicates downward pressure in the economy,” said Zhang Liqun, an economist with the Development Research Centre, a top government think tank.

Meanwhile a separate report by HSBC, which surveys smaller firms, said that manufacturing activity in the country fell to a nine-month low.

HSBC said its PMI for China fell to 48.2 in June, down from 49.2 in May.

via BBC

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
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
Alfonso Esparza

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