China's manufacturing expands in May

AP News
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Posted: Jun 01, 2013 1:12 AM

BEIJING (AP) — China's manufacturing activities slightly expanded in May, a sign that its economic recovery remains slow but stable.

China Federation of Logistics and Purchasing and the National Bureau of Statistic on Saturday released the latest Purchasing Managers' Index, which stood at 50.8 for May, slightly up from the previous month. The index is on a 100-point scale, and numbers above 50 indicate an expansion.

In a written statement, analyst Zhang Liqun said the economy is recovering but warned against uncertainties in economic growth.

The official figure is contrary to a recent survey by HSBC Corp. that predicted China's manufacturing might have contracted in May.

Some analysts have suggested economic activity is weaker than reported by Beijing because export data might be distorted due to companies reporting inflated prices in an effort to evade capital controls and bring money into China.

China's top economic official, Premier Li Keqiang, said last week there was little room for additional government stimulus to boost growth. He said improvements would have to come from economic reforms.

The country's economic growth slowed unexpectedly in the first quarter to 7.7 percent and forecasters have cut their growth outlooks for the year.