Report Says China Factory Activity Slows Again but Signs of Stabilization Seen

Chinese factory activity contracted for the fourth straight month in June but at a slower rate as signs of stabilization emerged, according to a report Tuesday.
The preliminary version of HSBC purchasing managers' index rose to a three-month high of 49.6 for the month from 49.2 in May. Manufacturing output held steady as new orders and purchasing activity in China's massive manufacturing sector rose slightly from the month before.
"On the other hand, manufacturers continued to cut their staff numbers, with the latest reduction the sharpest in over six years," said Annabel Fiddes, an economist at Markit, which conducted the survey.