Manufacturing in China shrinks

CHINA’S factory sector shrank for the first time in a year in July, a survey showed yesterday, feeding worries among the country’s main trading partners that its growth is unsustainable and could lead to a slump.

The HSBC flash purchasing managers’ index (PMI) fell to 48.9 in July, suggesting the manufacturing sector contracted at its fastest pace since March 2009, as monetary policy tightening and slack global demand weighed on the sector.