Manufacturing on Downward Trajectory
China's official purchasing managers index, a gauge of manufacturing activity, hit the lowest level in six months in May, making the case for the government to take bold actions to tackle the decelerating economy. The index published by the China Federation of Logistics and Purchasing reads 50.4 in May, down from 53.3 a month earlier, yet it was also the sixth straight month the reading was above the critical reading of 50.
Steelmakers Continue to Lose Money
China's major steelmakers reported a combined ¥1.79 billion profit in April, down from ¥2.08 billion a month earlier and down 96.7% from April 2011, the China Iron & Steel Association said. They sold ¥316.66 billion worth of products in April, down 0.8% from a year ago. The industry's 17 largest loss-making mills lost ¥1.96 billion in April, ¥31.98 million more than a year ago.
$1 = ¥6.34