China's PMI drops to lowest level since February 2009

China’s manufacturing index fell to 50.9 in June, down from 52 in May, hitting its lowest level since February 2009, Bloomberg reported, citing the China Federation of Logistics and Purchasing. A Purchasing Managers’ Index (PMI) reading above 50 indicates expansion. The lower PMI suggests that the country’s manufacturing growth is slowing in the wake of policies to cool housing and auto demand. Power shortages and monetary tightening have also had an impact on companies. “Economic expansion is losing some steam after a period of aggressive tightening,” said Chang Jian, a Hong Kong-based economist at Barclays Capital. “Slower growth is not bad as it can help contain inflation.”