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China's Purchasing Managers Index (PMI), a readout of the country'smanufacturing activity, ended five consecutive months of growth inMay and retreated to 50.4 percent from 53.3 percent in April, theChina Federation of Logistics and Purchasing (CFLP) said Friday. The figure in May showed China's economy decelerated but the growthtrend remained unchanged, as the reading still stood above 50percent that demarcates expansion from contraction, the CFLP saidin a statement. The CFLP measures PMI for the manufacturing sector based on surveysof 820 sample companies in 31 industries nationwide. A private index produced by HSBC and Markit showed China smanufacturing PMI dropped to 48.4 from 49.3 in April - its seventhstraight month below 50 - with the employment sub-index falling to48.1, its lowest level since March, 2009. "The short-term moderation of economic growth at present does notmean the Chinese economy is entering a new recession stage," thestatement said. From November to April, the PMI saw steady increases from 49percent to 50.3 percent, 50.5 percent, 51 percent, 53.1 percent and53.3 percent. The May figure was below market estimates and raised concerns overslower economic growth, but the possibility of a hard landing canbe ruled out, as the government has started to implement supportivemeasures, according to a commentary by ANZ Greater China. The world's second-largest economy is likely to further lose steamas the sub-index for new orders slumped, pointing to even weakerfuture factory activity, according to Zhang Liqun, a researcherwith the Development Research Center of the State Council. The sub-index for new orders dipped below 50 percent in May, down4.7 percentage points to 49.8 percent, indicating shrinking demandin the manufacturing sector, the CFLP data show. However, Zhang noted that the economic downturn will be mitigatedby government efforts to maintain growth, especially policies aimedat stabilizing investment. China's economy grew 8.1 percent in the first quarter of 2012 yearon year, nearly hitting a three-year low over diminishing exportorders and a flagging property market. The central government pledged last month to pay more attention tostabilizing economic growth, warning that the economy faces"increasing downward pressure." In the latest moves to shore up investment and growth, a series ofpolicies were announced last month to open the channels to enableprivate investment to flow into state-dominated sectors, and a planwas adopted on Wednesday by the State Council to boost thedevelopment of seven strategic emerging industries. Peng Wensheng, chief economist with the China International CapitalCorporation Limited, Saturday told Shanghai Securities Journal thatthe central bank is highly likely to lower interest rates soon, andmay further cut banks' reserve requirement ratio as many as threetimes within the year, in a bid to stabilize real economy. Cai Jin, CFLP vice chairman, said the economy is expected to bottomout in May and then pick up on government support to achieve annualgrowth of 8.2 to 8.3 percent this year. Author Source xinhua Editor Yang Fan. We are high quality suppliers, our products such as Stainless Steel Food Container , Stovetop Coffee Maker Manufacturer for oversee buyer. To know more, please visits Stainless Steel Whistling Kettle.
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