none

China manufacturing activity jumps to 18-month high

28-07-2014
by 
in 

Chinese manufacturing activity has risen well above forecasts this month to record its highest reading in 18 months.

The HSBC flash PMI came in at 52.0 for July – well above Bloomberg analysts’ expectations of 51.

A reading above 50 on the survey points to expansion, while a reading below 50 indicates contraction.

There was also good news on the outlook, with a sub-index of new orders reaching 53.7.

The latest reading puts the world’s second-biggest economy on track for an economic recovery.

HSBC chief China economist Hongbin Qu said both new orders and new export orders expanded at a faster pace than in June.

“The employment and prices sub-indices also improved. Meanwhile, stocks of finished goods contracted at a slower pace.”

Mr Qu said economic activity had continued to improve in July, which suggests the cumulative impact of the country’s mini-stimulus was still filtering through.

“We expect policy makers to maintain their accommodative stance over the next few months to consolidate the recovery,” he said.

The improving Chinese outlook caused the Australian dollar to jump above the 94c mark against the US dollar, with the expectation of increased demand for the country’s resource exports.

Related news & editorials

  1. 14.12.2018
    14.12.2018
    by      In
    The convenience of opening doors or logging onto computers with the wave of a hand is now possible with new technology that enables humans to be microchipped.
    A human microchip is the size of a grain of rice and it is implanted into the hand, between the thumb and forefinger, in a quick and fairly... Read More
  2. 14.12.2018
    14.12.2018
    by      In
    An additional $500,000 Federal Government investment is set to allow Deakin’s ManuFutures advanced manufacturing business incubator to set up a new acceleration programme for its members. The new ManuFutures Export Acceleration Programme (MEAP) will support the emerging businesses to strengthen... Read More
  3. 13.12.2018
    13.12.2018
    by      In
    After a long stint as the Asia-Pacific Managing Director of 600 Machine Tools, Cliff Purser is retiring from his post in Sydney, and returning to live in New Zealand.
    The genial Englishman has led the 600 team in Australia since transferring in November 2004 from the position of New Zealand... Read More
  4. 13.12.2018
    13.12.2018
    by      In
    Adelaide has been chosen as the headquarters of the newly established Australian Space Agency.
    The Australian Space Agency was officially launched on 1st July and received $41 million over four years from 2018-19 in the federal budget to “grow the Australian space industry,” including $26 million... Read More