Jun 4, 2012 12:00 AM GMT+0800 China s non-manufacturing industries expanded at the slowest pacein more than a year, as export orders declined and weakness in realestate countered strength in retailing and leasing, an officialsurvey indicated. The purchasing managers index fell to 55.2 in May from 56.1 inApril, the National Bureau of Statistics and China Federation ofLogistics and Purchasing said yesterday in Beijing. That s thelowest reading since March 2011 when the federation startedseasonally adjusting the data. The report adds to evidence of slower growth in the world ssecond-biggest economy as Europe s debt crisis crimps overseasdemand and government curbs on real estate feed through to moreindustries. A Chinese manufacturing index had the weakest readingin five months in May, federation data last week showed, helpingpush Brent crude below $100 a barrel for the first time in almosteight months. Yesterday s index was still at a relatively high level of 55.2which is in line with the general trend of steady growth innon-manufacturing industries, Cai Jin, a federation vicechairman, said in a statement. Market demand remains steady andreflects the structural changes in our country s economy. Service industries now account for 43 percent of the economy, thefederation said in yesterday s statement. That compares withalmost 90 percent in the U.S. Under China s current five-yearplan, the government aims to raise the share of services in grossdomestic product to 47 percent by 2015, according to a Xinhua newsagency report on May 28. Government Support U.S. and European (SXXP) stocks fell for the fourth week in five asweaker-than-estimated manufacturing output in the U.S. and Chinaplus record unemployment in the euro area heightened concerns theglobal economy is slowing. The benchmark Shanghai Composite Index rose for the first time infour weeks on speculation the government will take steps to boostthe economy after a manufacturing PMI compiled by the statisticsbureau and logistics federation expanded at the slowest pace sinceDecember. The 50.4 reading for May was barely above the 50 mark that dividesexpansion from contraction and compared with a 52.0 median estimatein a Bloomberg News survey of 27 economists. A separate gauge fromHSBC Holdings Plc and Markit Economics released the same day showeda seventh straight contraction, the longest since the globalfinancial crisis. Weak Momentum The manufacturing surveys present clear signs of weak economicgrowth momentum, China International Capital Corp. analysts ledby Beijing-based Peng Wensheng said in a June 1 note. TheNational Development and Reform Commission has recently expeditedproject approvals but whether this can effectively stabilizeinvestment and GDP growth still depends on monetary and creditpolicies. The economists forecast two to three more cuts in banks reserverequirements this year and estimate a reduction in benchmarklending rates is likely in the near term. Premier Wen Jiabao and the State Council, or Cabinet, warned lastmonth that the economy faces increasing downward pressure. Theypledged to put a greater focus on growth and actively raisedomestic demand. The government announced new subsidies to boost sales ofenergy-saving household appliances including refrigerators andwashing machines after the expiry of a previous program last year.Gome Electrical Appliances Holding Ltd., China s second- biggestelectronics retailer, said May 25 its first-quarter net incomeslumped 88 percent from a year earlier as the end of the incentivesled to a drop in consumer demand. Growth Slowdown The government is also stepping up approvals for infrastructure andcorporate investment projects to counter the economic slowdown thatCredit Suisse Group AG estimates will push growth down to 7 percentor slightly below this quarter compared with a year earlier.Expansion moderated to 8.1 percent in the first three months of theyear, the fifth straight quarterly slowdown. The National Development and Reform Commission said on May 25 itgave Baosteel Group Corp., the parent of China s largest listedsteelmaker, approval for an $11 billion plant more than seven yearsafter the project was conceived. Inflation indicators in both the non-manufacturing andmanufacturing PMIs declined in May, giving policy makers more roomto implement stimulus to combat the slowdown. Consumer prices rose3.4 percent in April from a year earlier, below the government s 4percent target for 2012 for the third month. Obvious Decline A gauge of input prices in yesterday s survey fell to 53.6 from57.9 in April, while an index measuring prices charged for goodscontracted, showing a below-50 reading for the first time thisyear, according to a statement from the statistics bureau. Theofficial manufacturing PMI showed input prices contracting for thefirst time since December. The obvious decline in prices could take some pressure offinflation, Cai said in the federation s statement. The non-manufacturing PMI is based on a survey of about 1,200companies covering 27 industries including construction, transportand telecommunications. The federation and statistics bureaustarted publishing a seasonally adjusted index for thenon-manufacturing PMI from the March survey, and revised readingsback to March 2011. A separate services industries gauge will be released by HSBC andMarkit tomorrow. The e-commerce company in China offers quality products such as Perfume Spray Bottle Manufacturer , Cosmetic Glass Containers Manufacturer, and more. For more , please visit Cosmetic Glass Containers today!
Related Articles -
Perfume Spray Bottle Manufacturer, Cosmetic Glass Containers Manufacturer,
|