ID :
186221
Fri, 06/03/2011 - 07:08
Auther :
Shortlink :
https://oananews.org//node/186221
The shortlink copeid
China's service activity slows down in May
HONG KONG, June 3 (Yonhap) -- China's service activity slowed down in May as the country continued its tightening monetary policies, an industry group said Friday.
The Purchasing Managers Index (PMI) for China's non-manufacturing sector came in at 61.9 in May, down from 62.5 a month earlier, according to the China Federation of Logistics and Purchasing (CFLP). The May figure was the first drop in three months.
A reading of 50 or above represents an expansion of the sector compared to the previous month while a reading lower than 50 represents a contraction. The non-manufacturing sector accounts for less than 45 percent of China's economy.
Cai Jin, vice president of the CFLP, attributed the decline largely to China's recent efforts to cool down its economy.
"Many companies are facing the pressure of soaring prices of raw materials. They also have difficulty in raising capital," he said. "The indicators showed that consumers are growing cautious on spending as the inflationary pressure continues to rise."
Despite the country's monetary tightening to tame inflationary pressure, China's economy continued to maintain strong momentum in the first quarter of this year, growing 9.7 percent from a year earlier.
China's consumer prices rose 5.3 percent in April from a year earlier, growing more than 5 percent for the second straight month.
In line with its tightening moves, the People's Bank of China, the central bank, last month raised the benchmark interest rate for the second time this year and the deposit reserve requirement ratio for its major banks for the fourth time this year.
The Purchasing Managers Index (PMI) for China's non-manufacturing sector came in at 61.9 in May, down from 62.5 a month earlier, according to the China Federation of Logistics and Purchasing (CFLP). The May figure was the first drop in three months.
A reading of 50 or above represents an expansion of the sector compared to the previous month while a reading lower than 50 represents a contraction. The non-manufacturing sector accounts for less than 45 percent of China's economy.
Cai Jin, vice president of the CFLP, attributed the decline largely to China's recent efforts to cool down its economy.
"Many companies are facing the pressure of soaring prices of raw materials. They also have difficulty in raising capital," he said. "The indicators showed that consumers are growing cautious on spending as the inflationary pressure continues to rise."
Despite the country's monetary tightening to tame inflationary pressure, China's economy continued to maintain strong momentum in the first quarter of this year, growing 9.7 percent from a year earlier.
China's consumer prices rose 5.3 percent in April from a year earlier, growing more than 5 percent for the second straight month.
In line with its tightening moves, the People's Bank of China, the central bank, last month raised the benchmark interest rate for the second time this year and the deposit reserve requirement ratio for its major banks for the fourth time this year.
