Chinese manufacturing in June grew at its slowest pace in seven months, Sunday media reports say.
The country’s National Bureau of Statistics and the China Federation of Logistics and Purchasing reported the official purchasing-managers index for June at 50.2, down from 50.4 in May, reports say.
That’s an indication that manufacturing is still expanding, since the index is above 50. But it also says that the government has been unable to get growth back on track in the world’s second largest economy, reports say.
Surveys by Reuters and Bloomberg News indicated that economists had expected the PMI to slip just below 50, into contraction.
The figures increase the chances that the government of Premier Wen Jiabao will make more efforts to stimulate the economy, reports say.
On Friday, the governor of the People’s Bank of China, Zhou Xiaochuan, said the country would continue with a prudent monetary policy and fine-tune it according to economic conditions. -By MarketWatch