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(ICIS) -- China’s manufacturing sector
grew at a slower pace in May, with the purchasing managers’ index (PMI) at its
its lowest level in nine months at 52%, official data showed on Wednesday. PMI,
a barometer of the monthly performance of China's factories, slipped 0.9
percentage point from 52.9% in April, according to China Federation of Logistics
& Purchasing (CFLP).
Except for a slight rebound in March, the PMI has been falling
continuously since September 2010, when China turned more aggressive in its
monetary tightening policy in response to spikes in inflation.
In the oil and petrochemical industry, producers opted to destock cargoes
in April and May instead of building more inventory, discouraged by declines in
commodity prices, said Wu of Changjiang Securities.
Inflation is expected to remain high at 5.4-5.5% in May, with price
pressures on food being aggravated by drought affecting a huge swathe of
farmlands in China, he said.
mrcplast.com
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