China’s non-manufacturing industries in June grew at the slowest rate in four months, adding to concerns that the government’s inflation-fighting efforts targeting the manufacturing sector are spilling into services, Bloomberg reported. The non-manufacturing purchasing managers’ index (PMI) declined from 61.9 in May to 57 in June, according to a statement by the China Federation of Logistics and Purchasing. A reading above 50 indicates growth. The non-manufacturing PMI is based on data from industries such as real estate, transport, retail, catering and software. “The slowdown is a result of the Chinese government’s tightening measures to curb inflation,” said Shen Minggao, head of China research at Citigroup. “The government is expected to continue the current measures at least in July as inflation is still high.” Vice Premier Wang Qishan said yesterday that slowdowns in export orders and output will make China’s economic growth target “difficult” to achieve.
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