Chinese economy shows signs of weakness
BEIJING — The expansion of China’s industrial sector slowed in June as export demand weakened as supply bottlenecks held back production, official data showed Wednesday.
Equally concerning, China’s service sector, a persistent laggard in the country’s post-pandemic rebound that Beijing policymakers are keen to see further boost the economy, has weakened as recent coronavirus outbreaks have once again taken hold. hampered consumer spending.
Signs of weakness on both fronts come as economists lowered growth expectations in the world’s second largest economy. In recent weeks, Morgan Stanley and Barclays, among others, have lowered their forecast for China’s gross domestic product for the full year to less than 9%, citing the impact of rising commodity prices on production and lower consumption than expected.
China’s National Bureau of Statistics said on Wednesday that its official manufacturing purchasing managers index fell slightly to 50.9 in June, from 51.0 in May.
The gauge was above the median forecast of 50.7 expected by economists polled by the Wall Street Journal and remained above the 50 mark that separates expansion from contraction for a 16th consecutive month. But it marked the lowest reading in four months.