01 June 2012 04:20 [Source: ICIS news]
But the index has remained above the 50% threshold, indicating that the Chinese industries have remained on an expansion mode, according to the China Federation of Logistics and Purchasing (CFLP).
The new order sub-index declined to 49.8% in May, down 4.7 percentage points from April, the data showed.
The sharp decline in this sub-index indicates a likely reduction in operating rates at manufacturing facilities in the near term, said Zhang Liqun, an analyst at CFLP.
The Chinese government is fine-tuning its macroeconomic policies to ensure stable growth.
Production sub-index under the PMI dropped by 4.3 percentage points to 52.9% in May, while the export index declined by 1.8 percentage points to 50.4%. The data also showed a 2.4-percentage point slippage in import index to 48.1%.
The sub-index for purchasing price in May fell by 10 percentage points from April to 44.8%, CFLP said.
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