China Factory Activity Keeps Falling in May

China’s manufacturing activity weakened further in June, falling to a nine-month low as demand fell, according to a preliminary survey by HSBC.

The bank’s Purchasing Managers’ Index (PMI) declined to 48.3, from May’s reading of 49.2. A reading below 50 indicates a contraction.

The weak data comes amid fresh concerns over the health of Chinese economy, the world’s second-largest.

Last week, the World Bank lowered its 2013 growth forecast for China.

The bank now expects the China to grow 7.7% this year, down from its earlier projection of 8.4%.

Among the concerns cited by analysts have been fears that a protracted slowdown in key markets such as the US and Europe may hurt demand for Chinese exports and impact its manufacturing sector.

via BBC

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