China's manufacturing grew at its weakest rate infive months in February as demand faltered and factories shut down for theLunar New Year holiday, two surveys showed Friday.
An industry group, the China Federation of Logistics andPurchasing, said its purchasing managers index declined to 50.1, down 0.3points from January, on a 100-point scale on which numbers above 50 show anexpansion in activity. A separate index by HSBC Corp. fell to 50.4 fromJanuary's 52.3.
China's economic growth rebounded to 7.9 percent in thefinal quarter of last year following its deepest slowdown since the 2008 globalcrisis. But analysts warn the recovery will be weak and gradual, and growthcould be vulnerable if trade or investment weakens.
China's recovery is continuing but the latest manufacturingindicator "suggests a slower pace of expansion," HSBC economistHongbin Qu said in a statement.
The Chinese federation said its measures of new orders andexports declined from January, while HSBC said its measures for both grewweakly.
"Overall the economy is in a period ofstabilizing," said economist Zhang Liqun in statement released by thelogistics federation.
Chinese manufacturing is closely watched as an indicator ofglobal consumer sales and potential demand for trading partners that supply itsfactories with raw materials and industrial components.
Economists are cautious about drawing conclusions aboutChina's economy from trade and other data in January and February, due to thelengthy Lunar New Year holiday. It begins on different days in those two monthseach year, distorting business activity.
This year, the holiday shutdown for Chinese companies fellentirely in February. Manufacturers often rush to fill orders before theholiday, boosting output, and then close for up to two weeks.
The latest Chinese manufacturing data come as hopes for aglobal economic recovery have been boosted by a run of upbeat data andindications from U.S. Federal Reserve chairman Ben Bernanke that the centralbank plans no immediate change in its easy monetary policy.
China's slowdown was largely due to government controlsimposed to cool inflation and surging housing prices. It deepened when globaldemand for Chinese exports weakened unexpectedly in 2011.
Chinese leaders are trying to reduce reliance on trade andinvestment by encouraging domestic consumption, which will depress growth ratesin coming years.
Many forecasters expect the rebound to peak incoming months before settling back to deliver growth of about 8 percent for theyear, stronger than the outlook for the United States, Europe and Japan butbelow China's double-digit rates of the past decade.