Survey Shows China Manufacturing Slowing in June

AFP

Consumers sample Apple computer products at a Mac shop in Beijing on June 29, 2010. Taiwan high-tech giant Foxconn plans to shift part of its production of Apple gadgets to other parts of China as it faces rising labour costs following a run of suicides and wage hikes, and according to reports citing unnamed executives, Foxconn, the worlds biggest electronics contract manufacturer, will move some manufacturing from Shenzhen to northern Tianjin and central Henan province.

SHANGHAI, KOMPAS.com — China’s manufacturing outlook weakened slightly in June for a third month, as orders for industrial materials and raw resources slackened. However, strong demand for food and other domestic products continued.

The state-affiliated China Federation of Logistics and Purchasing said its purchasing managers index, or PMI, fell to 52.1 in June from 53.9 in May and 55.7 in April. The index has remained above 50 for 16 straight months after slowing in late 2008 and early 2009.

But it has declined for the past three months. The figures come amid growing concerns over a possible “double-dip” in growth, especially if export demand plunges again due to a relapse into recession in other major economies.

The federation said its survey showed a decline in demand for chemicals, petroleum products and ferrous metals — key industrial materials. But the outlook for agricultural products and food, household goods, textiles and tobacco remained strong, partly reflecting strong local demand, it said.

The figures also may reflect steadier demand that shows a more sustainable pace of growth after the economy expanded 11.9 percent in the first quarter on a construction boom fueled by government stimulus policies, it said.

Editor: jimbon | Sumber :AP