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Manufacturing index recedes again in Feb
By Wang Yanlin |
March 1, 2011, Tuesday
|
Online Edition
Online Edition
THE index measuring Chinese manufacturing activities slid for the third consecutive month in February as a result of credit tightening, rising production costs and seasonal changes. Some economists deemed it good for checking inflation and revamping the economy.
The Purchasing Managers Index, a comprehensive gauge of industrial activities across the country, lost 0.7 percentage point from a month earlier to 52.2 percent in February, the China Federation of Logistics and Purchasing said today.
It was the third cutback after the index dropped to 52.9 percent in January from December's 53.9 percent and November's 55.2 percent.
"The slack of the headline PMI should be primarily ascribed to the weeklong Chinese New Year holiday," said Wang Qing, an economist at Morgan Stanley. "The holiday disrupted industrial activities in February."
Generally speaking, industrial production not only came to a halt during the holiday, but was also weakened in the week before and after it.
Li Maoyu, an analyst at the Changjiang Securities Co, said China's tightening measures to tame inflation also made it more difficult for manufacturers to get credit to boost output, thus helped to drag down the index.
"China's tougher monetary policy has moderated and will continue to check the growth of industrial activities," Li said. "A slower growth is good for the overall economy, keeping it from overheating and facilitating its reform."
The central bank raised the reserve requirement ratio on February 18 to a record 19.5 percent for big banks, the second such move in a month and ten days after an interest rate increase.
The market expected the policymakers to lift the interest rate at least twice this year to curb the runaway inflation.
The Purchasing Managers Index, a comprehensive gauge of industrial activities across the country, lost 0.7 percentage point from a month earlier to 52.2 percent in February, the China Federation of Logistics and Purchasing said today.
It was the third cutback after the index dropped to 52.9 percent in January from December's 53.9 percent and November's 55.2 percent.
"The slack of the headline PMI should be primarily ascribed to the weeklong Chinese New Year holiday," said Wang Qing, an economist at Morgan Stanley. "The holiday disrupted industrial activities in February."
Generally speaking, industrial production not only came to a halt during the holiday, but was also weakened in the week before and after it.
Li Maoyu, an analyst at the Changjiang Securities Co, said China's tightening measures to tame inflation also made it more difficult for manufacturers to get credit to boost output, thus helped to drag down the index.
"China's tougher monetary policy has moderated and will continue to check the growth of industrial activities," Li said. "A slower growth is good for the overall economy, keeping it from overheating and facilitating its reform."
The central bank raised the reserve requirement ratio on February 18 to a record 19.5 percent for big banks, the second such move in a month and ten days after an interest rate increase.
The market expected the policymakers to lift the interest rate at least twice this year to curb the runaway inflation.
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