Go Finance Reporting in BEIJING - China's manufacturing activity slowed slightly in April yesterday and raw material costs also decreased. Apparently, the Country of China tried to cool their economies.
It said China Federation of Logistics and Purchasing said in a statement, purchasing manager index (PMI) slipped to 52.9 in April from 53.4 in March.
Quoted by AFP on Monday (05/02/2011), data released by the British banking giant HSBC on Friday showed PMI at 51.8, unchanged from March. He explained that this figure above 50 indicates the sector is developing and below 50 indicates contraction.
These official figures showed input prices sub index, which measures the cost of raw materials and is an indicator of inflationary pressures, fell to 66.2 from 68.3. Soaring food prices and housing is a major scourge for China's leaders. They are worried about potential inflation that could trigger social unrest in the country more than 1.3 billion people.
In addition, inflation also remains high in March, with consumer price index rose 5.4 percent a year on year and became the fastest pace since July 2008 and well above the government's target of four percent in 2011.
This price is still high even though the local government has raised interest rates four times since last October and this much to increase reserve ratio requirement, which effectively limits the number of banks to lend money.
Continued to rise in price is encouraging Chinese Prime Minister Wen Jiabao issued a new promise in a speech delivered to China's parliament last month. (GoFinance)
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