AP, Hong Kong :
China’s factory activity remained subdued last month with both export demand and employment contracting, according to an official survey Monday that adds pressure on Beijing for more economic stimulus.
The China Federation of Logistics and Purchasing’s manufacturing index, which is based on a survey of factory purchasing managers, edged up to 50.2 in May from 50.1 the month before. The index, based on a 100-point scale, has been hovering around the 50-mark since December. Numbers below 50 indicate contraction.
Separately, HSBC’s manufacturing index, which also uses a 100-point scale, showed that manufacturing contracted for a third straight month as new export business fell at the sharpest rate in two years.
HSBC’s purchasing managers index edged up to 49.2, a tick higher than a preliminary reading of 49.1 in late May, and up from 48.9 in April.
The latest data on China’s outsize manufacturing industry, which employs many millions of people, may spur policymakers in Beijing to roll out more measures to keep economic growth on target.
“Even though the manufacturing PMI for May expanded slightly, it’s at a historically low level, and China’s manufacturing industry is facing relatively large downward pressure,” the federation’s report said.
China’s factory activity remained subdued last month with both export demand and employment contracting, according to an official survey Monday that adds pressure on Beijing for more economic stimulus.
The China Federation of Logistics and Purchasing’s manufacturing index, which is based on a survey of factory purchasing managers, edged up to 50.2 in May from 50.1 the month before. The index, based on a 100-point scale, has been hovering around the 50-mark since December. Numbers below 50 indicate contraction.
Separately, HSBC’s manufacturing index, which also uses a 100-point scale, showed that manufacturing contracted for a third straight month as new export business fell at the sharpest rate in two years.
HSBC’s purchasing managers index edged up to 49.2, a tick higher than a preliminary reading of 49.1 in late May, and up from 48.9 in April.
The latest data on China’s outsize manufacturing industry, which employs many millions of people, may spur policymakers in Beijing to roll out more measures to keep economic growth on target.
“Even though the manufacturing PMI for May expanded slightly, it’s at a historically low level, and China’s manufacturing industry is facing relatively large downward pressure,” the federation’s report said.
