A SURVEY shows manufacturing in China contracted this month on weakening demand, adding to fears about the strength of the recovery in the world's second-biggest economy.
HSBC on Thursday said the preliminary version of its monthly purchasing managers index fell to a nine-month low of 48.3 in June. That's down from 49.6 in May. Numbers below 50 indicate a contraction.
June factory output decreased, a reversal from gains in the month before. New export orders decreased at a faster rate.
HSBC said manufacturing sectors are being weighed down by deteriorating external demand and moderating domestic demand.
The preliminary PMI is based on responses from 85 to 90 per cent of 420 manufacturing companies polled each month.
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