Weak export growth holds down manufacturing

Weaker export growth dampened manufacturing growth in May, Bloomberg reported, citing a statement from the China Federation of Logistics and Purchasing. The Purchasing Managers’ Index fell to 53.3, from a high of 59.2 in April. A reading above 50 indicates expansion, while under 50 indicates contraction. The slowing came as China’s economy grew 10.6% year-on-year in the first quarter of 2008. Last week, People’s Bank of China forecasted a "moderate" slowing of economic growth in 2008 due to weaker economic expansion worldwide and less demand for Chinese exports.