China’s July manufacturing data were the weakest in more than a year as the government clamped down on property speculation and investment in polluting and energy- intensive factories.
A purchasing managers’ index released today by HSBC Holdings Plc and Markit Economics slid to 49.4 from 50.4 in June. A separate, government-backed PMI fell to 51.2 from 52.1, the Federation of Logistics and Purchasing reported yesterday. Fifty is the dividing line between expansion and contraction.
Officials may delay raising interest rates from crisis levels as austerity measures and unemployment in advanced economies dim the outlook for exports. China’s stocks rose after today’s data, as analysts including those at Morgan Stanley said the government may do more to aid growth by year-end.
Full Story: China Manufacturing Faces ‘Slowdown, Not a Meltdown’ – BusinessWeek
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