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. 18.06.2018
    18.06.2018
    by      In
    Queensland-based electronics design and manufacturing company, Hetech, is collaborating with selected local engineering companies to increase its design capacity of up to 20 engineers.
    With defence projects such as the LAND400: Phase 2 arriving in Queensland, collaboration between local engineers... Read More
  2. 15.06.2018
    15.06.2018
    by      In
    The NRMA has chosen Australian-made electric vehicle chargers from Brisbane-based Tritium to equip its $10 million network planned for New South Wales and the ACT. The network, which will be the largest in Australia, will comprise 40-plus charging stations that will be free to use for NRMA members... Read More
  3. 14.06.2018
    14.06.2018
    by      In
    Australia’s Collins Class submarine fleet is set to receive significant sonar upgrades this year in a project led by Raytheon Australia and Thales Australia.
    In announcing the commencement of the upgrade programme, Minister for Defence Industry, the Hon Christopher Pyne MP, said that as the... Read More
  4. 14.06.2018
    14.06.2018
    by      In
    Australian-founded Ainsworth Game Technology has expanded globally since being established in 1995, today representing the fifth-largest gaming manufacturer in the USA. The company boasts a new state-of-the-art US$40 million facility in Las Vegas, which produces thousands of gaming machines per... Read More