China's PMI shows slower growth

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BEI, China, May 23 (UPI) -- A "flash" estimate shows manufacturing activity in China slowed for the second consecutive month, financial research firm Markit said Monday.

The HSBC Flash China Manufacturing Purchasing Managers Index dropped from 51.8 in April to 51.1 in May, Markit said.

A flash estimate is based on data collected from 85 percent to 90 percent of results of a survey.

"Manufacturers continue to reduce inventories amidst slowing new business flows, leading to slower production growth at a 10-month low," said Hongbin Qu, HSBC chief economist.

"That said, we think there is no need to worry about a hard landing because the current level of the PMI is still consistent with around ... 9 percent gross domestic product growth," the economist said.

"Policy focus is still tilted toward taming inflation. We expect Beijing's tightening policy will continue in the coming months," he said.