20 June 2013 04:05 [Source: ICIS news]
SINGAPORE (ICIS)--HSBC said on Thursday that its preliminary China manufacturing purchasing managers’ index (PMI) dropped to a nine-month low of 48.3 in June from a final reading of 49.2 in May.
The drop means manufacturing activity in the world’s second-biggest economy is further contracting.
"Worsening external demand, slowing domestic demand and destocking pressure weighed on the June PMI," said Qu Hongbin, HSBC chief economist.
He also predicts that China’s GDP growth in the second quarter will slightly decelerate from the previous quarter.
PMI is a gauge of an economy's manufacturing activity, with a reading above 50 indicating an expansion, and a lower number denoting a contraction.
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