HSBC reported "China's manufacturing activity contracts in June"

As per the HSBC report on Tuesday (June 23, 2015), the demand growth remained subdued for world's second- largest economy, China.  The China's manufacturing activity contracted for the fourth straight month in June. HSBC also mentioned in the report, the PMI (Purchasing Managers' Index) came in at 49.6 in June which is the highest in three months but still below the break even point of 50.

The index which is calculated by information services provider Markit and tracks activity in factories and workshops is noticed as a key barometer of the country's economic health. According to the Bloomberg news, though it marked a fourth straight contraction, the figure was an improvement on May's final reading of 49.2 and also beat a forecast of 49.4 in a survey of economists.
 
The new businesses and purchasing activities have increased this month, the companies continued to reduce staff with the latest reduction the sharpest in more than six years said Annabel Fiddes, an economist at Markit. The increase in job cuts indicated that companies have relatively muted growth expectations as demand conditions both at home and abroad remain relatively depressed.
 
As per the data and records, seems manufacturing sector has lost growth momentum in Q2 as a whole, suggesting to authorities to step up their efforts to stimulate growth and job creation in the second half of the year.
 
"The overall growth momentum in China was "still weak" despite the improvement in the PMI reading. Monetary policy still needs to be further eased to counter the still-strong headwinds in the economy" said Zhao Yang, a Hong Kong-based economist with Nomura.
 
As per the HSBC released reports in the final PMI for June, China's economy is slowing down in 2015 after growing its weakest pace in last few years. In the first three months of this year, gross domestic product ( GDP) expanded 7.0 per cent, the worst quarterly result in six years.