Factory activity posts moderate rise in May
By Wang Yanlin |
June 2, 2013, Sunday
|
Print Edition
Print Edition
CHINA'S manufacturing activity in state-owned enterprises rebounded in May, as production and new orders increased, a survey showed yesterday.
The index reading reflected stabilizing growth in the world's second-largest economy, analysts said.
The official Purchasing Managers' Index, a comprehensive gauge of operating conditions in China's state-owned industrial companies, expanded to 50.8 last month, the China Federation of Logistics and Purchasing said. The pace was faster than April's 50.6 but below March's 50.9 figure.
A reading above 50 means expansion, and May was the eighth consecutive month in which the index was above this.
Zhang Liqun, an economist at the State Council's development research center, said the slight rebound of the official PMI showed a stabilizing economy.
"Purchasing prices are recovering faster," Zhang said. "It is a sign of strengthening confidence and higher expectation." But he said the economy had many uncertainties, with the impact of industrial restructuring expected to slow growth.
The component indices showed production increased 0.7 points from a month earlier to 53.3 in May, bolstered by greater output in electrical goods, information technology, transport and plastic products.
Input purchasing prices added 5 points to 45.1, the strongest increase so far this year.
New orders rose 0.1 point to 51.8, with more orders in larger enterprises in eastern China.
"The official PMI reading came in better than expected. But it is still early to tell whether the recovery is strengthening or not," said Li Maoyu, an analyst at Changjiang Securities Co.
The HSBC Flash China Manufacturing Purchasing Managers' Index, an indicator of the final reading of the HSBC PMI that weighs towards private and export-oriented manufacturers, fell to 49.6 in May - the first contraction in seven months.
Qu Hongbin, chief economist for China at HSBC Holdings Plc, said earlier that a sequential slowdown is likely in the second quarter.
China's gross domestic product expanded 7.7 percent in the first three months, slowing from 7.9 percent in 2012's final quarter.
The International Monetary Fund lowered its projection of China's economic growth for this year from 8 percent to 7.75 percent on Wednesday. The weaker-than-expected economic growth in China has triggered calls for tightening policies to be lifted, especially when inflation eased in recent months.
The index reading reflected stabilizing growth in the world's second-largest economy, analysts said.
The official Purchasing Managers' Index, a comprehensive gauge of operating conditions in China's state-owned industrial companies, expanded to 50.8 last month, the China Federation of Logistics and Purchasing said. The pace was faster than April's 50.6 but below March's 50.9 figure.
A reading above 50 means expansion, and May was the eighth consecutive month in which the index was above this.
Zhang Liqun, an economist at the State Council's development research center, said the slight rebound of the official PMI showed a stabilizing economy.
"Purchasing prices are recovering faster," Zhang said. "It is a sign of strengthening confidence and higher expectation." But he said the economy had many uncertainties, with the impact of industrial restructuring expected to slow growth.
The component indices showed production increased 0.7 points from a month earlier to 53.3 in May, bolstered by greater output in electrical goods, information technology, transport and plastic products.
Input purchasing prices added 5 points to 45.1, the strongest increase so far this year.
New orders rose 0.1 point to 51.8, with more orders in larger enterprises in eastern China.
"The official PMI reading came in better than expected. But it is still early to tell whether the recovery is strengthening or not," said Li Maoyu, an analyst at Changjiang Securities Co.
The HSBC Flash China Manufacturing Purchasing Managers' Index, an indicator of the final reading of the HSBC PMI that weighs towards private and export-oriented manufacturers, fell to 49.6 in May - the first contraction in seven months.
Qu Hongbin, chief economist for China at HSBC Holdings Plc, said earlier that a sequential slowdown is likely in the second quarter.
China's gross domestic product expanded 7.7 percent in the first three months, slowing from 7.9 percent in 2012's final quarter.
The International Monetary Fund lowered its projection of China's economic growth for this year from 8 percent to 7.75 percent on Wednesday. The weaker-than-expected economic growth in China has triggered calls for tightening policies to be lifted, especially when inflation eased in recent months.
- About Us
- |
- Terms of Use
- |
-
RSS - |
- Privacy Policy
- |
- Contact Us
- |
- Shanghai Call Center: 962288
- |
- Tip-off hotline: 52920043
- 沪ICP证：沪ICP备05050403号-1
- |
- 互联网新闻信息服务许可证：31120180004
- |
- 网络视听许可证：0909346
- |
- 广播电视节目制作许可证：沪字第354号
- |
- 增值电信业务经营许可证：沪B2-20120012
Copyright © 1999- Shanghai Daily. All rights reserved.Preferably viewed with Internet Explorer 8 or newer browsers.
