May PMI shows slower manufacturing growth

China’s Purchasing Managers’ Index (PMI) fell to 52.1 from 53.9 in May, indicating that the country’s manufacturing expanded at a slower pace for a second month in June, Bloomberg reported. A PMI reading above 50 indicates an expansion in manufacturing activity, while a reading below 50 indicates contraction. The figure, released by the Federation of Logistics and Purchasing and the Beijing-based National Bureau of Statistics, indicates that China may be succeeding in tempering its economic growth.The PMI reading comes a day after Premier Wen Jiaobao said the economy is moving in the "expected direction under the government’s macroeconomic controls", amid fears that it may be losing steam, AFP reported. China’s expansion hit an 11.9% annual pace in the first quarter – threatening to inflate consumer and asset prices. The manufacturing index covers more than 730 companies in 20 industries, including energy, metallurgy, textiles, automobiles and electronics.