Growth in China’s manufacturing sector cools as foreign demand slips
Beijing — Growth in China’s manufacturing sector cooled slightly in July as foreign demand for Chinese goods slackened, but a government-led infrastructure push kept construction humming and helped prop up the world’s second-largest economy. The official purchasing managers index (PMI) held above the 50-point mark that separates growth from contraction for the 12th consecutive month, as China poured funds into a construction boom that has fuelled demand for everything from cement to steel and other building materials. But the broad consensus among China watchers is that economic growth will cool in coming months as a government crackdown on financial risks raises borrowing costs for businesses and squeezes profits. The official PMI stood at 51.4 in July, the National Bureau of Statistics (NBS) said on Monday, down from the previous month’s 51.7 and a touch below the 51.6 forecast in a Reuters poll. Export orders, which helped Chinese factories stage a strong recovery in June, had eb...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.