Bloomberg, Zheng Lifei
China's manufacturing may contract for the first time in a year as output and new orders drop, preliminary data for a purchasing managers' index indicated.
The gauge fell to 48.9 for July from a final reading of 50.1 for June, HSBC Holdings Plc and Markit Economics said in a statement today. The final July reading is due Aug. 1.
Today's data adds to evidence that growth in the world's second-largest economy is slowing on Premier Wen Jiabao's campaign to tame consumer and property prices. The IMF said risks include faster-than-expected inflation, a real-estate bubble and bad loans from stimulus spending. . .View full article