China's economy set to cool

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BEIJING, July 2 (Xinhua): China's economy had been slowed to expand at a more desirable and moderate rate for the five months to May, according to an official macro-economy index chart, the national statistics agency said yesterday.

The macro economy index chart, filed by the National Bureau of Statistics (NBS), showed the latest figure for May was 113.3, the same as the previous four months, making a row of "green lights".

This compares to a high of around 120 from September to December last year when the macro economy lit up "yellow lights" to signal overheating risks. The ideal figure set by the bureau is 100.

The four months of "yellow lights" prompted the government to adjust macro controls with tighter monetary policies to avoid an overheating economy at the end of last year.

"The country's macro control measures played a significant role in reversing the overheating trend," said Zhang Liqun, a macro-economist at the Development Research Centre of the State Council.

The chart also revealed the country's consumer price index, a key indicator of inflation, had signaled "yellow lights" for nine months since September, indicating lingering inflationary pressure.