Chinese output takes hit for second month
FEARS of a slowdown in the Chinese economy grew yesterday on news that "non-manufacturing" output in the world's second biggest economy slowed for a second month.
The ongoing economic slowdown and austerity response in Europe has increased the global economy's dependence on Chinese growth to stimulate demand.
However, the euro crisis has led to a decline in demand for Chinese exports, making it harder for China to deliver high growth.
The Chinese non manufacturing purchasing managers' index fell to 55.2 in May from 56.1 in April.
The index works off a base of 50 where a figure above 50 shows growth in the economy and a reading below 50 indicates contraction.