Flash PMI data point to growth
Updated: 2013-09-24 06:40
By He Wei in Shanghai (China Daily)
|
|||||||||||
Activity in China's vast manufacturing sector hit a six-month high in September as new orders rebounded, a non-official survey showed on Monday, adding to signs of stabilization in the world's second-largest economy.
HSBC's preliminary Purchasing Managers' Index rose to 51.2 from August's final reading of 50.1, the second consecutive month above the watershed 50 level, which separates expansion from contraction.
The data - the earliest reading of China's economic performance in September - boosted confidence that the government may be able to meet its growth target for the year.
The preliminary survey, conducted by HSBC Holdings Plc and market data vendor Markit Group Ltd, is usually published about a week before the release of the final figures, making it the earliest available indicator of the manufacturing sector's performance.
Major sub gauges, including new orders, output and new export orders, advanced at a faster pace than in the previous month, except for the employment reading, which stood below 50.
"The firmer footing was supported by simultaneous improvements of external and domestic demand conditions," said Qu Hongbin, HSBC's chief economist in China.
"We expect a more sustained recovery as further filtering-through of fine-tuning measures should lift domestic demand. This will create more favorable conditions to push forward reforms, which should in turn boost the mid- and long-term growth outlooks," he said.
Official PMI data, which focus on large and State-owned firms, have been generally rosier than HSBC's survey, which mainly looks at smaller and private companies.
The latest survey suggested that smaller firms are starting to follow the steps of their larger counterparts, as official data last month climbed to 51 from 50.3 in July.
The government has recently announced a series of measures to support the slowing economy, including scrapping taxes for small firms, offering more help to ailing exporters and boosting investment in urban infrastructure and railways.
The State Council, China's cabinet, said in July that it would simplify customs clearance procedures, cut administrative fees and provide zero tariffs for exporters in the service sector.
Gao Qiang, general manager of Shanghai SVS Tools Co Ltd, said the fine-tuning measures have in part helped to stabilize the exports of his company to India.
Orders for the electronic machine-maker have been steady in the last three months, with monthly shipments rising to two containers from just one container in the first four months of the year.
Related Stories
PMI recovery brings fresh hope 2013-09-06 09:30
Sevice PMI hits five-month high in Aug 2013-09-04 15:13
HSBC: China's service PMI rises to five-month high 2013-09-04 11:04
China's PMI rebounds in Aug 2013-09-02 08:43
PMI turnaround lifts outlook 2013-08-23 07:48
Today's Top News
China announces pricing policy for fuel upgrade
Leader calls strategic links with Beijing a model
Maduro aims to build trade plan with China
China to help deal with chemical weapons
Employee claims Danone gave bribes
Court media officers get greater say
Regulation cuts spending on meetings
Nature's light show 'once-in-a-lifetime' trip
Hot Topics
Lunar probe , China growth forecasts, Emission rules get tougher, China seen through 'colored lens', International board,
Editor's Picks
Watchdog bites with no favor |
New energy solutions |
Xinjiang scores on the national stage at last |
Africa looks to the Orient for lessons |
Protection plus |
Go online to reap the harvest |