Manufacturing still expanding
By Wang Yanlin |
January 2, 2013, Wednesday
|
Print Edition
Print Edition
MANUFACTURING activity in state-owned enterprises continued to expand in December, indicating further stabilization in the world's second-largest economy.
The official Purchasing Managers' Index, a gauge of operating conditions in the industrial sector slanted toward SOEs, remained at 50.6 last month, the same as November, the China Federation of Logistics and Purchasing said yesterday.
It was above 50, meaning expansion, for the third month.
Cai Jin, vice chairman of the federation, said this suggested a trend of moderate economic recovery and was a positive start to the new year.
Most of the sub-indexes saw gains, with the sub-index for input prices up 3.2 percentage points to 53.3 percent from a month earlier.
However, four, including new export orders and output, witnessed slight month-on-month declines, all within one percentage point.
Xue Jun, an analyst at CITIC Securities Co, said: "The official PMI suggests that China's manufacturing continues to expand at a solid pace."
Li Maoyu, an analyst at Changjiang Securities Co, said the continued recovery laid the foundations for a modest economic rebound in 2012's final quarter, with growth expected to be up to 7.8 percent.
However, Zhang Liqun, an analyst with the State Council's Development Research Center, told Xinhua news agency that the rebound trend was still weak.
Judging from the decline in the sub-index for new export orders, Zhang said export conditions were still "not good."
Zhou Hao, an economist at Australia & New Zealand Banking Group Ltd, also sounded a note of caution.
He said economic and policy uncertainties in the United States and the European Union suggested demand for Chinese exports would remain sluggish.
"In particular, the monetary policy will need to improve its effectiveness by lowering the funding costs of firms in order to support a sustained economic recovery," Zhou said.
Commerce Minister Chen Deming said last week that foreign trade was expected to increase by around 6 percent year on year in 2012, slower than the government target of 10 percent.
Zhang said that the country's economy was in transition from growing rapidly toward maintaining stable growth of between 7 to 8 percent annually.
The official Purchasing Managers' Index, a gauge of operating conditions in the industrial sector slanted toward SOEs, remained at 50.6 last month, the same as November, the China Federation of Logistics and Purchasing said yesterday.
It was above 50, meaning expansion, for the third month.
Cai Jin, vice chairman of the federation, said this suggested a trend of moderate economic recovery and was a positive start to the new year.
Most of the sub-indexes saw gains, with the sub-index for input prices up 3.2 percentage points to 53.3 percent from a month earlier.
However, four, including new export orders and output, witnessed slight month-on-month declines, all within one percentage point.
Xue Jun, an analyst at CITIC Securities Co, said: "The official PMI suggests that China's manufacturing continues to expand at a solid pace."
Li Maoyu, an analyst at Changjiang Securities Co, said the continued recovery laid the foundations for a modest economic rebound in 2012's final quarter, with growth expected to be up to 7.8 percent.
However, Zhang Liqun, an analyst with the State Council's Development Research Center, told Xinhua news agency that the rebound trend was still weak.
Judging from the decline in the sub-index for new export orders, Zhang said export conditions were still "not good."
Zhou Hao, an economist at Australia & New Zealand Banking Group Ltd, also sounded a note of caution.
He said economic and policy uncertainties in the United States and the European Union suggested demand for Chinese exports would remain sluggish.
"In particular, the monetary policy will need to improve its effectiveness by lowering the funding costs of firms in order to support a sustained economic recovery," Zhou said.
Commerce Minister Chen Deming said last week that foreign trade was expected to increase by around 6 percent year on year in 2012, slower than the government target of 10 percent.
Zhang said that the country's economy was in transition from growing rapidly toward maintaining stable growth of between 7 to 8 percent annually.
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