BEIJING -- China's economy has yet to rebound from its startling slide last month, according to an informal survey of Chinese manufacturers released Thursday.
The preliminary HSBC Flash China Manufacturing purchasing managers index shrunk for the seventh consecutive month in May by registering 48.7, down from April's final reading of 49.3.
Readings under 50.0 represent a contraction. A final reading for May is to be released next week.
"Manufacturing activities softened again in May, reflecting the deteriorating export situation," said Hongbin Qu, an economist for HSBC. "This calls for more aggressive policy easing, as inflation continues to slow."
China has already indicated that it would boost liquidity and channel money to new infrastructure development. The government will also encourage private investment in the state-controlled energy sector.