Business

China's manufacturing steady

BEIJING China's manufacturing and services sectors expanded at a solid pace in May thanks to robust construction and infrastructure investment.

It is welcome news for authorities trying to strike a balance between maintaining stable economic growth and defusing debt risks.

The official manufacturing Purchasing Managers' Index (PMI) was at 51.2 last month, unchanged from April, a monthly survey by the National Bureau of Statistics showed on Wednesday.

The results suggest authorities were having some success in stabilising the broader economy without risking a sharper slowdown in growth.

"China's economy is changing into a trend of stabilisation from a momentary spike and drop," said Mr Zhang Liqun, an analyst with the China Logistics Information Centre, in a statement.

Most analysts agree that momentum will slow after strong first quarter growth of 6.9 per cent, as Beijing's crackdown on its financial sector is expected to take a toll on corporates' financing costs. The slowdown has been benign, with some key sectors holding up well.

The statistics bureau said construction remained robust despite slowing a notch from the previous month, as infrastructure investment speeded up, boosting demand for steel. - REUTERS

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