Slowdown: China’s economy shows signs of weakness

The index is seen as a key barometer of the Asian giant’s economic health

BEIJING:
Chinese manufacturing activity slowed further in July, official data showed Saturday, an early sign of weakness for the world’s second-largest economy in the second half of this year. The official Purchasing Managers’ Index (PMI) came in at 50.0 last month, the National Bureau of Statistics (NBS) said in a statement. The reading, which tracks activity in China’s vast factory and workshop sector, decelerated slightly from 50.2 in June. The index is seen as a key barometer of the Asian giant’s economic health, a key driver of global growth. A figure above 50 signals expansion in the sector, while anything below indicates contraction. “The decline of the official PMI suggests the manufacturing sector remained weak,” economists from Australian bank ANZ said in a statement. They predicted that China’s government would further ease credit in the second half of 2015 in an attempt to shore up growth.


Published in The Express Tribune, August 2nd, 2015.

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