ID :
192192
Fri, 07/01/2011 - 06:47
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Shortlink :
https://oananews.org//node/192192
The shortlink copeid
China's manufacturing activity cools in June
By Kim Young-gyo
HONG KONG, July 1 (Yonhap) -- China's manufacturing activity slowed for the third consecutive month in June as the government continued its monetary tightening, an industry group said Friday.
The Purchasing Managers Index (PMI) for China's manufacturing sector came in at 50.9 in June, down from 52 a month earlier, according to the China Federation of Logistics and Purchasing (CFLP). The June figure was the lowest in 10 months.
The PMI is an indicator that measures the economic health of a country's manufacturing sector. 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.
Market watchers said the slight drop was largely due to China's recent efforts to cool down its economy.
"We believe that the slowdown was due to slower domestic demand caused mainly by the government's monetary and property tightening measures, weakening export demand, as well as the power shortage problem," said Helen Chin, researcher at Li & Fung Research Center.
"It is, however, noteworthy that the June PMI stayed firmly above the 50 mark, which means that the manufacturing sector is still expanding, though in a slower manner."
In 2010, China's economy expanded 10.3 percent, up from 9.2 percent the previous year, 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.
In May, China's consumer prices rose 5.5 percent from a year earlier to a 34-month high. It was an increase of more than 5 percent for the third straight month.
Market watchers expect that consumer prices rose 6 percent or even higher this month, spurred by the country's soaring pork and vegetable prices.
The Chinese government is expected to continue to maintain its tightening measures, putting its top policy priority on reining in runaway inflation.
In April, the People's Bank of China, the central bank, raised the benchmark interest rate for the second time this year, in a bid to curb rising prices. It has also hiked the deposit reserve requirement ratio for its major banks six times in 2011.
HONG KONG, July 1 (Yonhap) -- China's manufacturing activity slowed for the third consecutive month in June as the government continued its monetary tightening, an industry group said Friday.
The Purchasing Managers Index (PMI) for China's manufacturing sector came in at 50.9 in June, down from 52 a month earlier, according to the China Federation of Logistics and Purchasing (CFLP). The June figure was the lowest in 10 months.
The PMI is an indicator that measures the economic health of a country's manufacturing sector. 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.
Market watchers said the slight drop was largely due to China's recent efforts to cool down its economy.
"We believe that the slowdown was due to slower domestic demand caused mainly by the government's monetary and property tightening measures, weakening export demand, as well as the power shortage problem," said Helen Chin, researcher at Li & Fung Research Center.
"It is, however, noteworthy that the June PMI stayed firmly above the 50 mark, which means that the manufacturing sector is still expanding, though in a slower manner."
In 2010, China's economy expanded 10.3 percent, up from 9.2 percent the previous year, 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.
In May, China's consumer prices rose 5.5 percent from a year earlier to a 34-month high. It was an increase of more than 5 percent for the third straight month.
Market watchers expect that consumer prices rose 6 percent or even higher this month, spurred by the country's soaring pork and vegetable prices.
The Chinese government is expected to continue to maintain its tightening measures, putting its top policy priority on reining in runaway inflation.
In April, the People's Bank of China, the central bank, raised the benchmark interest rate for the second time this year, in a bid to curb rising prices. It has also hiked the deposit reserve requirement ratio for its major banks six times in 2011.
