PMI flat, price pressures ease
By Wang Yanlin |
April 30, 2011, Saturday
|
Print Edition
Print Edition
THE growth of China's manufacturing activities was flat in April but price pressures began to ease, an HSBC survey showed yesterday.
The headline HSBC Manufacturing Purchasing Managers' Index, which measures industrial activities across the country but is slanted more towards private firms, stood at 51.8 last month, the same as the level in March. A reading above 50 points to expansion.
The April index reading was lower than the long-run series average of 52.3, the bank said. Relatively lackluster growth of new business and a slower expansion in manufacturing production were cited as the main reasons.
Qu Hongbin, chief economist for China at HSBC, remained optimistic about the broad outlook.
"The final results confirmed the picture of steady growth across the manufacturing sector," Qu said.
In April, new order growth was below the long-run trend, indicating uncertainties in external demand after the unrest in some Arabic countries and the earthquake-tsunami disaster in Japan. But purchase price inflation eased to an eight-month low and the job creation index increased at its fastest pace so far this year.
Despite moderating inflationary pressure at the manufacturers' gate, Qu suggested the government continue its tight macroeconomic policies as the input price index reading remained strong.
In April, rising prices of raw materials were cited as the key driver of inflation, with steel and oil costs specifically cited.
Industrial production grew steadily at 14.4 percent year on year in the first quarter. Profits at manufacturing companies expanded 32 percent in the first three months, down from 34.3 percent between January and February.
The headline HSBC Manufacturing Purchasing Managers' Index, which measures industrial activities across the country but is slanted more towards private firms, stood at 51.8 last month, the same as the level in March. A reading above 50 points to expansion.
The April index reading was lower than the long-run series average of 52.3, the bank said. Relatively lackluster growth of new business and a slower expansion in manufacturing production were cited as the main reasons.
Qu Hongbin, chief economist for China at HSBC, remained optimistic about the broad outlook.
"The final results confirmed the picture of steady growth across the manufacturing sector," Qu said.
In April, new order growth was below the long-run trend, indicating uncertainties in external demand after the unrest in some Arabic countries and the earthquake-tsunami disaster in Japan. But purchase price inflation eased to an eight-month low and the job creation index increased at its fastest pace so far this year.
Despite moderating inflationary pressure at the manufacturers' gate, Qu suggested the government continue its tight macroeconomic policies as the input price index reading remained strong.
In April, rising prices of raw materials were cited as the key driver of inflation, with steel and oil costs specifically cited.
Industrial production grew steadily at 14.4 percent year on year in the first quarter. Profits at manufacturing companies expanded 32 percent in the first three months, down from 34.3 percent between January and February.
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