China's Manufacturing Sector Contracts for First Time
in 7 Months
BEIJING -- In another sign of the weakness of
recovery in the world's second-largest economy, manufacturing activity in China
contracted in May for the first time in seven months, HSBC said Thursday.
The British banking
giant's preliminary purchasing managers' index (PMI) fell to 49.6 this month
from a final 50.4 in April, putting it below the 50 mark that indicates
contraction. A reading above signals
expansion. It was the lowest figure since
October's 49.5, according to the bank's data, and the first time it had been below 50 since then.
"The cooling manufacturing activities in May
reflected slower domestic demand and ongoing external headwinds," said Qu
Hongbin, an HSBC economist in Hong Kong, adding the slowdown cast
"downside risk to China's fragile growth recovery."
The government should provide more support for
the sluggish job market, possibly through measures such as training subsidies
and tax cuts for employers, he said in a statement.
China grew at its slowest
pace in 13 years in 2012, with gross domestic product expanding 7.8% in the
face of weakness at home and in key overseas markets.
Economic growth rebounded to 7.9% in the final
quarter of 2012, raising hopes of recovery, but fell back to 7.7% in
January-March, with other recent indicators also dampening expectations.
Chinese leaders have said
expansion will slow in the next stage of the nation's development from the
near-double-digit yearly rises of recent decades, as they try to retool the
economy to emphasise consumer demand as the key growth driver, rather than
investment and exports.
The government has set
its economic growth target for this year at 7.5%.
China normally exceeds its stated growth goals,
but Yao said actual expansion could fall short of the target given the current
economic situation.
"Anything above seven percent" might
still prove acceptable to China's new leaders, she added.
"The key right now for the government is the
job market. If the job market continues to hold, there is really not so much
they would do about the cyclical growth."
Copyright Agence France-Presse, 2013
http://www.industryweek.com/global-economy/chinas-manufacturing-sector-contracts-first-time-7-months
Note : Kalimat yang berwarna hijau adalah kata kerja bahasa inggris.
Note : Kalimat yang berwarna hijau adalah kata kerja bahasa inggris.
