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China’s non-manufacturing growth slowed in May, survey shows
BEIJING: China’s non-manufacturing industries expanded at a slower pace for a second month, as export orders declined and weakness in real estate countered strength in retailing and leasing, an official survey indicated,
The purchasing managers’ index fell to 55.2 in May from 56.1 in April, the National Bureau of Statistics and China Federation of Logistics and Purchasing said in a statement yesterday in Beijing. A reading above 50 indicates expansion.
The data add to evidence of slower growth in the world’s second-biggest economy as Europe’s debt crisis crimps overseas demand and government curbs on real estate feed through to more industries. A manufacturing report on June 1 showed the weakest reading since December, helping send Brent crude tumbling below US$100 a barrel for the first time in almost eight months.
“Although the index fell slightly in May, it was still at a relatively high level of 55.2 which is in line with the general trend of steady growth in non-manufacturing industries,” Cai Jin, a federation vice-chairman, said in the statement. “Market demand remains steady and reflects the structural changes in our country’s economy.”
Non-manufacturing industries account for about 40% of the economy, according to the federation. The PMI, which is seasonally adjusted, is based on a survey of about 1,200 companies covering 27 service industries including construction, telecommunications and transport.
The National Development and Reform Commission may be accelerating construction approvals as part of measures to counter a slowdown that Credit Suisse Group AG estimates will push economic growth down to 7% or “slightly below” this quarter compared with a year earlier. Expansion moderated to 8.1% in the first three months of the year, the fifth straight quarterly slowdown. — Bloomberg