Economic slowdown may continue in May, says HSBC

Manufacturing orders predicted to drop to lowest level so far this year

China's economy may continue to slow in May as its manufacturing sector is expected to deteriorate at a faster rate, given a significant contraction in new orders and exports, HSBC Holdings PLC said on Thursday.

HSBC's preliminary purchasing managers' index for May, which indicates operating conditions in the manufacturing industry, slipped to 48.7 - the lowest reading this year - from April's 49.3, meaning that economic growth may be threatened by more rapid cooling.