Starting to Cool? U.S. and Chinese Manufacturing Snapshots

Manufacturing Slowing In U.S., Other Nations
The New York Times (6/1, Norris, Subscription Publication) reported, “Manufacturing helped lead economic recoveries in the” U.S. and around the globe. “But now, there are signs that trade volumes are losing momentum, particularly in Europe but also in most other developed countries.” In late 2010 and early 2011, manufacturers in the U.S., China, Japan, Britain and the four largest economies in the euro zone “reported that export orders were growing. Now, orders are more likely to be falling or, at best, holding their own.”

China’s Manufacturing Grew Less Than Forecast Last Month
Bloomberg News (6/1) reports, “China’s manufacturing grew less than forecast in May, a government report showed, increasing the odds the government will boost stimulus to counter a deceleration in the world’s second-biggest economy.” China’s statistics bureau and logistics federation said in a statement that “the Purchasing Managers’ Index expanded at a slower pace for the first time in six months, falling to 50.4 from 53.3” the previous month. “The report signals a deepening economic slowdown, raising chances Premier Wen Jiabao will take more-aggressive steps to sustain expansion after he pledged a sharper focus on stabilizing growth.”

The AP (6/1, Kurtenbach) reports, “The European debt crisis is pinching China’s export manufacturers, while moves to control property prices have chilled spending on construction. Some analysts said the surveys suggest China’s economic growth will fall below 8 percent in the second quarter.” The AP adds, “That’s still high by Western standards but a weak performance for China compared with years of double-digit growth and might reduce its appetite for imports from countries that have become increasingly reliant on Chinese demand.”

CNN Money (6/1) reports, “Meanwhile, HSBC also issued a report Friday morning showing that factory output fell to 48.4 in May, with average input costs falling for the first time since January. The weak report from the banking company signals the seventh straight month of declining manufacturing activity in China.”

AFP (6/1) notes, “HSBC’s manufacturing figures typically paint a bleaker picture than China’s official numbers. The HSBC survey puts more emphasis on smaller companies, which are suffering more in the economic downturn than state-owned giants.”

These snapshots were assembled, organized and first shown by the North American Die Casting Association on June 6. www.diecasting.org