Two indicators ofmanufacturing activity in China they expanded in February, but at a slower pace than last month, suggesting that the world's second-largest economy's rebound is slower than hoped. The official PMI index of the manufacturing sector fell to 50,1 points from 50,4 in January, while the index compiled by HSBC Holdings it dropped to 50,4 from 52,3. A reading above 50 points indicates an economic expansion.
The sub-indexes for new orders, new foreign orders and employment all recorded declining readings in February, confirming the weakness in external and domestic demand. However, the markets expected the drop given that the preliminary HSBC data was released on February 25 and was at 50,4 points. Analysts point out that the long Chinese New Year holidays likely had an impact on the data, as this year it fell in February while last year it was in January.
