Chinese manufacturing cooling down as credit market tightens

MANUFACTURING growth in China slowed in June, according to official figures released yesterday, while HSBC suggests that the sector is actually contracting.

HSBC’s purchasing managers’ index (PMI) shows the worst performance for nine months and suggests that business conditions for factories have now deteriorated for two months running.

Total new orders, staff numbers and purchasing activity all fell throughout the month, indicating a negative response to tighter credit and declining demand for exports in the US and Europe.