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| China manufacturing activity in slight pick-up | China manufacturing activity in slight pick-up |
| (35 minutes later) | |
| China's manufacturing activity, a key driver of its economic growth, expanded slightly in July, latest government figures show. | China's manufacturing activity, a key driver of its economic growth, expanded slightly in July, latest government figures show. |
| The country's official Purchasing Managers' Index (PMI) rose to 50.3 in July from 50.1 in the previous month. | The country's official Purchasing Managers' Index (PMI) rose to 50.3 in July from 50.1 in the previous month. |
| The PMI is a key indicator of activity in the sector and a reading above 50 indicates expansion. | The PMI is a key indicator of activity in the sector and a reading above 50 indicates expansion. |
| China's growth rate has slowed for two quarters in a row and there has been concern that it may slow further. | China's growth rate has slowed for two quarters in a row and there has been concern that it may slow further. |
| Data released earlier this month showed the world's second-biggest economy grew at an annualised rate of 7.5% in the April to June quarter, down from 7.7% in the previous three months. | |
| 'Perfect storm' | |
| China's manufacturing and export sectors have been key drivers of its economic growth. | |
| However, demand for China's exports has slowed recently, especially from key markets such as the US and Europe as they grapple with their own economic problems. | |
| At the same time, policymakers have found it tough to boost domestic consumption enough to offset the decline in foreign sales. | |
| To make matters more difficult, labour costs in China have been rising, resulting in some companies looking to countries such as Bangladesh and Cambodia for low-cost manufacturing. | |
| Analysts said that despite the slight pick-up in July, these factors continued to be a threat to China's manufacturing sector. | |
| "All this put together has created a perfect storm," Simon Littlewood of Asia Now Consulting Group told the BBC. | |
| "Today's data doesn't change the reality that the situation in China remains that of declining growth." |