Reply #28: asia: China manufacturing slows in power, credit squeeze

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http://hosted.ap.org/dynamic/stories/A/AS_CHINA_MANUFACTURING?SITE=AP&SECTION=HOME&TEMPLATE=DEFAULT&CTIME=2011-06-01-00-16-20

SHANGHAI (AP) -- China's manufacturers suffered sluggish growth in orders in May as widespread power shortages and inflation-fighting curbs on credit dampened demand, surveys showed Wednesday.

The China Federation of Logistics and Purchasing said its purchasing managers index fell to 52 from 52.9 in April and 53.4 in March. The index has remained above 50, the benchmark for expansion, for 26 straight months.

Economists say the manufacturing trends reflect a moderation rather than a so-called hard landing.

London-based HSBC said its survey of 400 companies, which is adjusted for seasonal factors, showed manufacturers adding workers despite relatively slower output and new orders in May. Its index edged to a 10-month low of 51.6 in May, down from 51.8 in April.