none

China manufacturing activity still sluggish

05-05-2014
by 
in 

China’s manufacturing activity has picked up in April over the previous month, but remains in negative territory.

The preliminary HSBC Purchasing Managers Index (PMI) was 48.3 in April, rising from March’s final figure of 48 – still below the 50 line separating expansion from contraction.
This follows a decline in new orders and decline in factory output.

The report followed data last week showing China’s expansion moderated to the slowest pace in six quarters.

“We do not believe that this uptick in the HSBC PMI signals any sort of turning point for the economy and continue to believe that growth momentum is on a downtrend,” Zhang Zhiwei, chief China economist at Nomura Holdings Inc. in Hong Kong, said.

China is trying to balance supporting growth with curbing shadow banking, eliminating overcapacity and reducing pollution.

The economy is forecast to expand 7.4 percent this year, according to a Bloomberg survey of analysts last month, which would be the slowest pace since 1990. Growth was 7.7 percent in 2012 and 2013.

The manufacturing report, known as the Flash PMI, is typically based on 85 percent to 90 percent of responses to surveys sent to purchasing managers at more than 420 companies. The final reading will be released on May 5.

Signs in the PMI of a contraction don’t indicate that manufacturing is shrinking on an annual basis. Factory output rose 8.8 percent in March from a year earlier.

Related news & editorials

  1. ‘The YARDS’ precinct in Kemps Creek promises to be a benchmark in Australian industrial development and cements the region as a key distribution hub in New South Wales.
    04.03.2021
    04.03.2021
    by      In , In
    A $1 billion major industrial and logistics community project is set to begin construction in Western Sydney.
    ‘The YARDS’ precinct in Kemps Creek promises to be a benchmark in Australian industrial development and cements the region as a key distribution hub in New South Wales.
    The project is... Read More
  2. Karen Andrews
    04.03.2021
    04.03.2021
    by      In , In
    Australia’s rare earths and critical minerals were described as leading global assets, in a new grant program announced today from Tomago in the NSW Hunter region. 
    These comments were made as Minister for Industry, Science and Technology Karen Andrews, along with Prime Minister Scott Morrison,... Read More
  3. Editor Barry O’Hagan
    04.03.2021
    04.03.2021
    by      In , In
    Industry Update would like to give a warm welcome to our new editor, Barry O’Hagan.
    Barry brings a wealth of experience to the role, having worked as a media professional for more than 25 years.
    A former newspaper and magazine journalist, he has a passion for telling the stories of businesses and... Read More
  4. Westpac’s Institutional arm found 57% of large corporations in this hemisphere have begun onshore supply and manufacture.
    04.03.2021
    04.03.2021
    by      In
    This time last year, Industry Update asked the question: “Is it time to bring Manufacturing Back Home?”
    The answer to that question is no different now – and the industry responded with a resounding ‘YES’.
    Manufacturing remains a backbone of the Australian economy. We need it now more than ever and... Read More
Products
Suppliers