none

CHINA MANUFACTURING STILL SLUGGISH

28-01-2015
by 
in 

China’s manufacturing sector has strengthened slightly at the start of the year, but still remains weak overall.

A preliminary reading of the HSBC China Manufacturing Purchasing Managers Index rose to 49.8 in January from a final reading of 49.6 in December. A reading above 50 indicates expansion, while a reading below 50 indicates contraction.

News of the contraction comes just days after Chinese authorities said growth in the world's second largest economy had slowed to its weakest in 24 years.

China's economy expanded 7.4% in 2014 from a year ago, missing its official growth target of 7.5% for the first time in 15 years.

Overall growth has been hampered by problems in manufacturing.

“(The) data suggest that the manufacturing slowdown is still ongoing amid weak domestic demand,” HSBC economist Hongbin Qu said in a statement accompanying the figures.

China’s export sector has held up relatively well in recent months, partly thanks to a stronger US economy.

Exports rose 6 per cent last year and new export orders continued to rise in January, according to the PMI, though more slowly than the month before. The weakness can instead be pinned on feeble sales within China.

Employment in the manufacturing sector also fell at a faster rate in January, the PMI showed, which is potentially a worry for China’s government. Chinese leaders have said they are comfortable with slowing growth as long as job creation continues apace. If that changes, they may move more aggressively to stimulate the economy. “Employment is a lagging indicator, and the manufacturing sector has been in a soft state for quite a while,” said Macquarie economist Larry Hu. “In 2015, China’s labour market will have more problems.”

Prices for both raw materials and finished products fell faster in January than the month before, the PMI said, part of a pattern of deflation that has become entrenched in China’s industrial sector over the past three years. 

Related news & editorials

  1. 24.05.2018
    24.05.2018
    by      In
    Rio Tinto has announced that Australia’s Office of the National Rail Safety Regulator has approved the autonomous operation of trains at its iron ore businesses in WA.
    After several years of regulatory hurdles, delays, and slowly increasing coverage of its automated haulage network of freight... Read More
  2. 24.05.2018
    24.05.2018
    by      In
    A new reactive battery system has been switched on, stabilising the power grid of a coastal town with wildly variable energy demands.
    The autonomous system is located in the fishing village of Cape Jervis, and is part of a $3.65 million power stabilisation trial that could lead to town batteries... Read More
  3. 24.05.2018
    24.05.2018
    by      In
    The world of workplace health and safety descended on the Melbourne Convention & Exhibition Centre yesterday for the first day of the all-new Workplace Health & Safety Show. And it did so in big numbers, with the opening day attendance estimated in excess of 1200.
    It helped that the show is... Read More
  4. 23.05.2018
    23.05.2018
    by      In
    International industry leaders in renewable energy and storage are meeting in Adelaide for the 2018 Australian Energy Storage Conference and Exhibition.
    Sam Staples, AES Sales Manager and Conference Programme Manager, said South Australia’s ongoing work in the renewable energy sector makes it the... Read More