Amidst looming trade war with US, Chinese factory growth slows in June
30 June 2018
China's official Purchasing Managers’ Index (PMI) released on Saturday fell to 51.5 in June, below analysts’ forecast of 51.6 and down from 51.9 in May
According to a Reuters report, China’s economy has already felt the pinch from a multi-year crackdown on riskier lending that has driven up corporate borrowing costs, promoting the central bank to pump out more cash by cutting reserve requirements for lenders.
The findings are in line with recent data including credit growth, investment and retail sales pointing to slowing growth in China’s economy, as policymakers navigate debt risks and a heated trade row with the United States, the report added.
Significantly, the June new export orders index contracted for the first time since February, dropping to 49.8 from 51.2 in May.
A production sub-index fell to 53.6 in June from 54.1 in May, while a new orders sub-index declined to 53.2 from 53.8.