Chinese economic data points to slowdown

<p>New data has provided further evidence to suggest the Chinese economy is slowing down.</p>

Economic growth in China appears to be slowing down, according to new data released over the weekend.

Export growth slowed to one per cent in May, the lowest rate in nearly a year. Both of China's main export markets – Europe and the US – saw a fall in exports compared with 12 months previously, the third consecutive month in which such a drop occurred.

"Growth remains unconvincing and the momentum seems to have lost pace in May. The short-term growth outlook remains subject to risks and we may well end up revising down our growth forecast for 2013 further," said RBS economist Louis Kuijs in a note, according to Reuters.

Other figures show that new yuan loans from Chinese banks to businesses fell in May due to slowing economic conditions negating the need for corporations to borrow money.

In addition, China's first quarter growth rate fell to 7.7 per cent compared with 7.9 per cent in the last quarter of 2012, while the May Producer Price Index for manufactured goods dropped by 0.6 per cent over the previous month and by 2.9 per cent over the same time last year.

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