China's manufacturing PMI slows in May

China's manufacturing sector growth slowed in May, reinforcing a growing view that growth may be easing in the world’s third-biggest economy. China’s Shanghai Composite Index declined after a purchasing managers’ index (PMI) showed that the country’s manufacturing industry expanded at a slower pace in May.

The official China Federation of Logistics and Purchasing purchasing managers index (PMI) fell to 53.9 from 55.7 in April.

That was less than the median estimate of 54.5.An output index fell to 58.2 from 59.1 in April, today’s report showed. The new-order index slid to 54.8 from 59.3 and an export-order index dropped to 53.8 from 54.5. The input-price index decreased to 58.9 from 72.6. Separately, HSBC Holdings' PMI fell to 52.7 in May from a revised 55.2 in April. This is the lowest since June 2009.

"The overheating risk is likely to ease as tightening measures filter through," Qu Hongbin, chief China economist at HSBC, said today. "We see robust economic growth without double-dip risks not least because of massive existing infrastructure investment and resilient private consumption."