PMI growth still rising but slower
By Wang Yanlin |
May 2, 2010, Sunday
|
Print Edition
Print Edition
CHINA'S manufacturing continued to grow in April thanks to a strengthened world economic recovery and robust domestic demand, a survey showed yesterday.
But the slower pace of expansion suggested limited space for more growth against the backdrop of escalating trade disputes and stronger inflationary pressure, according to one analyst.
The official Purchasing Managers Index, a comprehensive gauge of manufacturing activities across the nation, settled at 55.7 percent in April, the China Federation of Logistics and Purchasing said.
The index was up from 55.1 percent in March and 52 percent in February.
A reading above 50 percent indicates expansion, and it was the 14th straight month it had gone beyond that threshold.
"The continuing growth in the PMI was largely supported by the strong domestic demand, and it was regular for manufacturing to expand in March and April due to revived demand after the Spring Festival holidays," said Zhang Liqun, a federation analyst.
"Looking ahead, the PMI growth pace may slow down because of the uncertainties in the global trade when anti-dumping and anti-subsidy rows between countries are escalating, and domestic costs of production materials are increasing quickly."
Industrial production grew 18.1 percent from a year earlier in March, moderating from a jump of 20.7 percent a month ago.
Profit of manufacturing firms also grew at a slower pace of 102.6 percent year on year in the first quarter, down 21.2 percentage points from the January-February period, although it was still on a fast track.
The Producer Price Index, the factory-gate measurement of inflation, expanded 5.9 percent on an annual basis in March, up further from the advance of 5.4 percent in February.
China's gross domestic product surged 11.9 percent from a year earlier in the first three months, the fastest pace since the end of 2007.
It paved the way for the government to beef up its efforts to revamp the nation's economy.
But the slower pace of expansion suggested limited space for more growth against the backdrop of escalating trade disputes and stronger inflationary pressure, according to one analyst.
The official Purchasing Managers Index, a comprehensive gauge of manufacturing activities across the nation, settled at 55.7 percent in April, the China Federation of Logistics and Purchasing said.
The index was up from 55.1 percent in March and 52 percent in February.
A reading above 50 percent indicates expansion, and it was the 14th straight month it had gone beyond that threshold.
"The continuing growth in the PMI was largely supported by the strong domestic demand, and it was regular for manufacturing to expand in March and April due to revived demand after the Spring Festival holidays," said Zhang Liqun, a federation analyst.
"Looking ahead, the PMI growth pace may slow down because of the uncertainties in the global trade when anti-dumping and anti-subsidy rows between countries are escalating, and domestic costs of production materials are increasing quickly."
Industrial production grew 18.1 percent from a year earlier in March, moderating from a jump of 20.7 percent a month ago.
Profit of manufacturing firms also grew at a slower pace of 102.6 percent year on year in the first quarter, down 21.2 percentage points from the January-February period, although it was still on a fast track.
The Producer Price Index, the factory-gate measurement of inflation, expanded 5.9 percent on an annual basis in March, up further from the advance of 5.4 percent in February.
China's gross domestic product surged 11.9 percent from a year earlier in the first three months, the fastest pace since the end of 2007.
It paved the way for the government to beef up its efforts to revamp the nation's economy.
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