Index points to industrial expansion in March
By Wang Yanlin |
March 22, 2013, Friday
|
Print Edition
Print Edition
CHINA'S manufacturing activity may have grown faster in March due to the recovery of demand at home and abroad, according to the latest survey.
The HSBC Flash China Manufacturing Purchasing Managers' Index, the earliest available indicator of the industrial sector's vitality, was 51.7 in March, up from February's final reading of 50.4.
A reading above 50 indicates expansion, so March is likely to be the fifth consecutive month that the index, slanted toward private and export-oriented firms, has pointed to expansion.
Qu Hongbin, chief economist for China and co-head of Asian Economic Research at HSBC Holdings Plc, said the rise was on the back of stronger new orders and production growth.
"This implies that the Chinese economy is still on track for a gradual growth recovery," Qu said, adding that inflation remained under control, leaving room for China to keep policies relatively accommodative to sustain growth.
Other analysts had suggested earlier that China should tighten its policy stance to rein in increasing inflationary pressure after the Consumer Price Index rose to a 10-month high of 3.2 percent in February.
Zhang Zhiwei, a Nomura economist, said this month's HSBC Flash PMI was better than expected.
"The strong reading in March may suggest that February's weakness is mainly due to the distortion from the lunar new year holiday," Zhang said.
Both industrial production and fixed-asset investment expanded at a solid pace in the first two months while export performance far exceeded expectation.
Foreign direct investment in China also rose for the first time in nine months in February.
The component indexes of the HSBC survey show that manufacturing output may be at 52.8 this month, a two-year high compared to February's 50.8. New orders are 53.3, up from 51.4, and new export orders up to 51.1 from 50.3.
Input prices fell below 50 this month, pointing to decreasing prices, the data showed.
The HSBC Flash China Manufacturing PMI is an estimate of the final data to be released on April 1. It is based on 85 to 90 percent of total survey responses to give a preliminary indication of the final data.
The HSBC Flash China Manufacturing Purchasing Managers' Index, the earliest available indicator of the industrial sector's vitality, was 51.7 in March, up from February's final reading of 50.4.
A reading above 50 indicates expansion, so March is likely to be the fifth consecutive month that the index, slanted toward private and export-oriented firms, has pointed to expansion.
Qu Hongbin, chief economist for China and co-head of Asian Economic Research at HSBC Holdings Plc, said the rise was on the back of stronger new orders and production growth.
"This implies that the Chinese economy is still on track for a gradual growth recovery," Qu said, adding that inflation remained under control, leaving room for China to keep policies relatively accommodative to sustain growth.
Other analysts had suggested earlier that China should tighten its policy stance to rein in increasing inflationary pressure after the Consumer Price Index rose to a 10-month high of 3.2 percent in February.
Zhang Zhiwei, a Nomura economist, said this month's HSBC Flash PMI was better than expected.
"The strong reading in March may suggest that February's weakness is mainly due to the distortion from the lunar new year holiday," Zhang said.
Both industrial production and fixed-asset investment expanded at a solid pace in the first two months while export performance far exceeded expectation.
Foreign direct investment in China also rose for the first time in nine months in February.
The component indexes of the HSBC survey show that manufacturing output may be at 52.8 this month, a two-year high compared to February's 50.8. New orders are 53.3, up from 51.4, and new export orders up to 51.1 from 50.3.
Input prices fell below 50 this month, pointing to decreasing prices, the data showed.
The HSBC Flash China Manufacturing PMI is an estimate of the final data to be released on April 1. It is based on 85 to 90 percent of total survey responses to give a preliminary indication of the final data.
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