China Manufacturing Expands at Slower Pace

Jul. 1 – Manufacturing in China expanded at a slower pace for a second month in June as the Purchasing Managers’ Index (PMI) fell to 52.1 percent from 53.9 percent in May.

The figures released by the China Federation of Logistics and Purchasing on Thursday indicate that the government is succeeding in tempering an expansions that hit an 11.9 percent annual increase in the first quarter, threatening to drive inflation up.

The PMI includes a package of indices that measure performance in the manufacturing sector. A reading above 50 percent indicates economic expansion, while that below 50 percent indicates contraction.

June was the 16th straight month that the index has been above 50 percent.

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