BEIJING: Inflation is taking a toll on China’s businesses, as two manufacturing surveys show that input prices are rising and weighing on commercial activity.
The broader Chinese economy remained healthy but firms warned that they were passing rising costs on to consumers, which could hurt domestic demand, and struggling on export sales because of weak global markets.
The official purchasing managers’ index (PMI), compiled by the China Federation of Logistics and Purchasing, fell to a nearly three-year low of 52.0 in June from 53.3 in May and 59.2 in April.
A reading over 50 indicates an expansion of activity, while one below 50 suggests contraction. – Reuters