BEIJING: China's manufacturing sector is showing signs of a slowdown in the face of anti-inflationary steps taken by government, which is worried about the political fallout of price rise.
The purchasing managers index, which is a reflection of the conditions in 50 important segments of the manufacturing industry, showed a decreasing rate of growth for the ninth straight month in May.
The last slippage was from 52.9 points in April to 52 in May, according to the government-backed China Federation of Logistics and Purchasing. The PMI is quickly reaching the level of 50 points, which indicates a contraction.
Observers said credit controls imposed by the government and power shortages are two most important reasons for the slower growth in manufacturing.
The purchasing managers index, which is a reflection of the conditions in 50 important segments of the manufacturing industry, showed a decreasing rate of growth for the ninth straight month in May.
The last slippage was from 52.9 points in April to 52 in May, according to the government-backed China Federation of Logistics and Purchasing. The PMI is quickly reaching the level of 50 points, which indicates a contraction.
Observers said credit controls imposed by the government and power shortages are two most important reasons for the slower growth in manufacturing.