Chinese authorities' moves put the brakes on growth

CHINA's manufacturing growth slowed in April, a survey showed yesterday, suggesting that the government's tightening efforts in the world's second biggest economy have reduced economic steam quicker than expected.

The official Chinese purchasing managers index (PMI) fell to 52.9 last month from 53.4 in March, and well shy of market forecasts for an increase to 54.

Any figure over 50 denotes growth. Analysts pointed out that the more lacklustre manufacturing figures were in line with a separate PMI survey by banking giant HSBC last Friday that clung near a seven-month low of 51.8 in April. They said the slowdown in manufacturing in a country increasingly important for western mining and raw materials companies showed the effects of the Chinese authorities' recent interest rate rises to curb inflation running at three-year highs. China has also ordered banks to lend less.

Zhang Liqun, a government researcher, said: "Overall, the PMI shows there is still a possibility that the Chinese economy may slow down, especially as falling demand growth leads to adjustments in inventories, increasing the possibility of slowing economic growth."