China manufacturing grows for first time in six months

china manufacturing

China’s manufacturing activity expanded in June for the first time this year as the effects of Beijing’s mini-stimulus on the world’s second-largest economy gradually kick in, HSBC said Monday.

The bank said in a statement that its preliminary purchasing managers index (PMI), which tracks activity in China’s factories and workshops, came in at 50.8 this month, the highest since November’s identical figure.

It was also the first time since December that the index has been above the 50-point break-even level, suggesting the sector is expanding, according to data compiled by financial information services provider Markit and released by HSBC.

The indicator is a closely watched gauge of the health of the Asian economic powerhouse and key driver of global growth.

“The improvement was broad-based with both domestic orders and external demand sub-indices in expansionary territory,” HSBC economist Qu Hongbin said in the statement.

“This month’s improvement is consistent with data suggesting that the authorities’ mini-stimulus are filtering through to the real economy.”

With growth slowing this year, Beijing has since April announced a series of measures to bolster growth, including tax breaks for small enterprises, targeted infrastructure outlays and incentives to encourage lending in rural areas.

In the first three months of 2014 China’s economy grew 7.4 per cent, weaker than the 7.7 per cent in October-December and the worst since a similar 7.4 per cent expansion in the third quarter of 2012.

Premier Li Keqiang in March announced a growth target of “around 7.5 per cent” for this year.

But the government indicated the target was flexible to a certain extent as long as the job market was stable, and it has publicly ruled out a massive stimulus similar to what was seen during the global financial crisis.

Qu said in the HSBC statement that the employment sub-index, which has been indicating decreases, showed “signs of stabilisation”, adding the bank expected the government to maintain its “accommodative policy stance” until the recovery is sustained.

 

 

 

Source : Channel News Asia | June 23, 2014

by Thomas D’Innocenzi

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About thomasdinnocenzi

Thomas D’Innocenzi is a highly accomplished, results-focused international consultant with extensive experience in global sourcing and business development worldwide to meet evolving business needs. Tom has proven ability in implementing and managing profitable global marketing and sourcing operations. He has extensive experience in international business development to accommodate rapid growth. Skilled in building top-performing teams, bench-marking performance, and developing organizations to improve efficiency, productivity, and profitability. Experienced transition leader and change agent. Tom founded Nova Advisors with the mission of providing expert Global Business Development consulting services for companies seeking to expand their market share as an independent consultant. Tom has a network of experts and advisors throughout the Asia-Pacific region and North America. His expertise includes business development, global sourcing, manufacturing, commodities, logistics, QA/QC, FDA, regulatory compliance, sustainability, and supply chain optimization. Tom is experienced in the medical device, apparel, consumer goods and technology services verticals helping companies advance their global sourcing capabilities and develop new markets through a local and sustained approach. Located in SE Asia and the United States, Tom expands market reach to drive sales. His global sourcing strategy includes directly negotiating with commodity suppliers, supply chain networks and distributors for optimal terms based on his expertise and first-hand knowledge of the players. Contact Tom to use his consulting service to increase your global market and make global sourcing profitable for you in the Asia Pacific Region and the United States. http://www.NovaAdvisors.com thomas@NovaAdvisors.com USA Direct: +1.904.479.3600 SINGAPORE: +65.6818.6396 THAILAND: +662.207.9269
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