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 senior international executive with extensive experience in global sourcing and market development worldwide to meet evolving business needs. Tom has proven ability in implementing and managing profitable global sourcing operations worldwide. Extensive experience in international market development operations to accommodate rapid growth. Skilled in building top-performing teams, benchmarking performance, and restricting organizations to improve efficiency, productivity, and profitability. Experienced transition leader and change agent. As principal of Nova Advisors, LLC I’ve assembled an exemplary team that brings with them the knowledge and experience gained from starting up a Global Sourcing program with multiple Fortune 500 companies as well as the largest supplier network throughout the Asia-Pacific region. We have experience and expertise in more than a thousand medical and pharmaceutical products in manufacturing and sourcing at the best value. The right product, the right price point and the right branding fueled these successes that resulted in double-digit growth for top line sales and bottom line net margins for our customers. What sets us apart: • Our reach includes a large network of suppliers & manufacturers spanning 13 countries in Asia-Pacific region • We understand the manufacturing process and the business of the supplier and the buyer • Our company culture is based on quality assurance and our process is based on local quality control Our commitment is to be your partner offering the best products and services at the lowest cost. Contact me to discuss how we can make the global marketplace work for you. thomas@novaadvisors.com In addition, I am open to discussing opportunities in global sourcing, international marketing & sales, logistics and medical/pharma in Thailand, Vietnam, Malaysia, Philippines & Japan. Aside from my work I enjoy piano, astronomy, physics, and assisting my daughters with their studies. SPECIALTIES: Global Sourcing, Supply Chain Management, Business Development, Marketing, Logistics, Global Networking, Market Development, Healthcare Solutions, Pharmaceuticals, Medical Devices, Technology, Asia, Southeast Asia, US and Canada
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