China - Despite China's remarkable manpower efficiency and tremendous manufacturing process growth, showing a grim picture in recent months when the manufacturing output has been recorded its slowest rate for 17 months. The effort of Chinese government to accelerate the economic growth proves to be less effective, and the index of manufacturing output fell to 51.2 in July from 52.1 in June. Reported China Federation of Logistic and Purchasing.
Economic analysts have asserted the reason behind the slowdown is because of banks strict policies to lend money to firms. It has been reported that the Chinese economy is a major concern for the government and contemplated as it could be overheating.
Analysts have pointed the consolidation of property prices in China triggered banks to limit the credit.
Meanwhile, the government has taken damage control steps by reducing stimulus on construction projects, and kept a tab on high energy consuming and polluting factories.
"We know Chinese growth is slowing and this number provides confirmation of this," said Brian Jackson, a strategist with Royal Bank of Canada in Hong Kong.
Mr. Jackson further added that the export of Chinese goods could have been a major stimulus to check the slowdown. However, if the export fall to expectations then Beijing would likely to deliver a renewed surge in investment spending.
The Chinese economy grew by 10.3% and still higher than government's 8% target.
