Chinese manufacturing growth slows in July

China’s purchasing managers’ index decreased to 50.1 in July, down 0.1 points from June, indicating a slight slowdown in the nation’s manufacturing growth despite recently implemented expansionary policies, Financial Times reported. A reading above 50 indicates the sector expanded, while a reading below 50 indicates contraction. The decline in the PMI reading contradicted analyst expectations of an increase in manufacturing activity following the government’s decisions to cut interest rates and encourage bank lending. However, it appears these measures are taking longer to take effect. Premier Wen Jiabao cautioned that people should not downplay the challenges posed by slowing domestic growth and turbulent global conditions to the Chinese economy. “Downward pressure is still relatively big,” he said. Regardless, many analysts believe that the necessary measures are underway to see a rebound in manufacturing in the second half of 2012.