Mainland factory output stays flat for June

July 6, 2016

An official survey shows growth in mainland factory activity has stalled, adding to expectations that Beijing will have to roll out more stimulus measures soon to boost the sluggish economy.

The official Purchasing Managers’ Index eased to 50 last month – a four-month low. The 50-point mark separates growth from contraction.

New export orders contracted last month, albeit marginally. Manufacturers continued to cut jobs and at a faster pace.

Economists worry that if policymakers hold off on additional stimulus, the country’s economy will slow further in the second half of this year.

Analysts say any further deterioration in second-quarter performance might prompt policymakers to increase government spending and further loosen monetary policy. China will release its quarterly economic growth figure later this month.

 

Source:  http://rthk.hk

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