none

CHINA MANUFACTURING BOUNCES BACK

06-04-2015
by 
in 

China’s manufacturing activity expanded in March for the first time since December, bolstered by a recent government stimulus package.

The official Purchasing Managers’ Index (PMI), released by the National Bureau of Statistics (NBS), came in at 50.1 in March, up slightly from 49.9 in February.

A figure above 50 signals expansion, while anything below indicates contraction.

The index, which tracks activity in factories and workshops, is considered a key indicator of the health of the world’s second largest economy.

Premier Li Keqiang said last month policy makers would step in to support the economy if growth slows too sharply, while central bank Governor Zhou Xiaochuan flagged room to act.

“The government won’t allow the growth to slip below 7 per cent,” said ANZ economist Zhou Hao. “I think there will be more support measures being rolled out soon to stabilise market expectations.”

Those measures could include increased infrastructure spending, additional interest-rate reductions and more cuts in bank reserves, economists said, which could see growth start to pick up in the second quarter.

“There’s a lot more to be done,” Mizuho’s Mr Shen said. “But it’s good the government has started to respond.”

The latest reading suggests China's factories, marred by deflation and overcapacity, may be starting to pick up after two interest rate cuts in the last six months and robust US demand.

Related news & editorials

  1. 16.08.2018
    16.08.2018
    by      In
    Following extensive growth of the business, Beacon Solar (a division of Beacon Lighting Group) has changed its business (trading) name to Beacon Energy Solutions.
    Beacon Solar has been in the energy efficiency/solar market for more than 10 years, with the business initially offering residential... Read More
  2. 15.08.2018
    15.08.2018
    by      In
    BHP’s new $4.8 billion South Flank iron ore mine in the Pilbara is expected to create about 2500 jobs during construction and 600 ongoing roles. But local fabricators are quire rightly up in arms about the company’s decision to award the contract for 20,000 tonnes of structural steel work to... Read More
  3. 14.08.2018
    14.08.2018
    by      In
    The former Trade Commissioner of Denmark to Australia and New Zealand, Michael T Hansen has been named General Manager of Nilfisk in Australia.
    Originally from Denmark, Hansen has more than 25 years of experience in business development and sales.
    Over the last 9 years as Trade Commissioner, Hansen... Read More
  4. 14.08.2018
    14.08.2018
    by      In
    World-renowned physicist Dr Cathy Foley has been named CSIRO Chief Scientist with a brief to help champion science, its impact and contribution to the world. Dr Foley is best known for her work developing superconducting devices and systems that have assisted in unearthing over $6 billion in... Read More