China's Manufacturing Growth Weakens as New Orders Drop - Bloomberg

By Bloomberg News - 2012-07-01T00:59:49Z

China’s manufacturing Purchasing Managers’ Index was 50.2 in June, the National Bureau of Statistics and China Federation of Logistics and Purchasing said today.

The reading compares with the 49.9 median estimate in a Bloomberg News survey of 24 economists and 50.4 in May. A number above 50 indicates expansion.

China will report second-quarter gross domestic product data next week that may show a sixth straight deceleration in growth as Europe’s debt crisis crimps exports and property curbs damp domestic demand. The pace of expansion may slow to around 7.5 percent, according to Bank of America Corp., while Credit Agricole CIB projects a rate as low as 7 percent after an 8.1 percent gain in the first three months of 2012.

The federation’s PMI hasn’t dropped below 50 since November’s reading. That contrasts with a separate purchasing managers’ index from HSBC Holdings Plc and Markit Economics. Its preliminary reading on June 21 indicated that manufacturing may have contracted for an eighth month in June. The final report is due tomorrow.

To contact the editor responsible for this story: Nerys Avery at navery2@bloomberg.net