China Manufacturing Slowed in May as Domestic, Int'l Demand Ebbs

June 3, 2013 8:13 AM EDT
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U.S. markets are indicated higher in early trading amid new manufacturing data showing a slowdown in growth last month.

Data has the HSBC/Markit Purchasing Managers' Index (PMI) at 49.2 in May, its lowest level since last October. The number compares with 50.4 reported in April and a preliminary reading o 49.6 release May 23rd. A reading of 50 or better indicates expansion in a segment.

China's official manufacturing PMI, released last Saturday, came in at 50.8 in May, a gain from 50.6 reported in April. The PMI for China's non-manufacturing segment dipped from 54.5 in April down to 54.3 last month.

Analysts are largely looking for a quarter-over-quarter slip in growth for China as global demand in domestic and international markets continues to cool. One Nomura analyst is looking for China's GDP to slip 0.2 points from 7.7 percent down to 7.5 percent in Q2.

HSBC's PMI total new orders sub index came in at 48.7, the last time since September 2012 that the index has been below 50.

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