China, world’s second largest economy is dwindling for the fourth consecutive month this year in spite of its signs of stabilization in June.
The market indicator PMI (Purchasing Managers’ Index) derived by Markit group was at 49.6 in June up from 49.2 in May but still stood below 50 which separates contraction from expansion. The sector showed evidences of improvement as output stabilised inspite of a slight pick up in total new work, while purchasing activity also rose slightly over the month said Annabel Fiddes economist from Markit Group. She added that many manufacturers continue to cut staff and have relatively muffled growth expectations. The Central bank also cut its reserve requirement ratio by one percentage to lend out more money. All of this comes as growth slowed to a six-year low of 7% in the first quarter of this year.