Chinese business conditions improved at their slowest rate in two and a half years in June on the back of an across-the-board deterioration, including slowing new order and production growth as well as worsening credit availability and financial positions, the results of the preliminary flash MNI China Business Sentiment Indicator show.
The flash overall conditions indicator fell to 51.92 from 54.40 in the final May survey. If confirmed by the final results, the June reading would be the lowest since 41.67 in January 2009.
An index figure above 50 indicates that business activity is growing or improving, a figure below 50 that it is shrinking. The further the figure above or below 50, the faster the growth or contraction in business activity.