23 May 2013 04:43 [Source: ICIS news]
SINGAPORE (ICIS)--China’s manufacturing activities contracted in May, according to a preliminary purchasing managers' index (PMI) which dropped to a seven-month low of 49.6, investment bank HSBC announced on Thursday.
The flash HSBC PMI for May was 0.8 points lower than the 50.4 in April.
Weakening domestic demand as well as soft external demand pulled down May’s preliminary PMI reading, according to Qu Hongbin, chief China economist for HSBC.
“There’s increasing risk of an overall slowdown in the second quarter,” Qu said.
PMI is a barometer of an economy's manufacturing activities, with a reading above 50 indicating an expansion and a lower number denoting a contraction.
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