LONDON/NEW YORK, May 23: Chinese factory activity declined in May for the first time in seven months and US manufacturing grew at its slowest clip since October, suggesting it may take a while before the global economy starts to pick up steam.

Thursday’s downbeat business surveys from the world’s top two economies, however, may not assuage some of the market fears stoked this week by Federal Reserve Chairman Ben Bernanke, who hinted that the US central bank could soon scale back monthly bond purchases provided the economy maintained recent momentum.

Stock markets around the world tumbled after Bernanke’s remarks on Wednesday and extended losses once the Chinese factory data was released.

Separate surveys showed the downturn in the 17-country eurozone eased slightly this month, though businesses continued to suffer from a chronic lack of new orders, which should inhibit any meaningful near-term recovery.

In the United States, financial data firm Markit said falling overseas demand and government belt-tightening at home helped push its US Manufacturing Purchasing Managers Index to a seven-month low of 51.9 in May from 52.1 the previous month. A reading above 50 indicates expansion.

Markit chief economist Chris Williamson said the data suggested that manufacturing, which had its best quarter in two years during the first three months of 2013, would provide only a modest boost to overall US growth in the second quarter.—Reuters