The longest rail line in the world was opened by China on December 26, 2012. China is making new advancements in technology and industry., a photo by Pan-African News Wire File Photos on Flickr.
August 21, 2013
Chinese Manufacturing Sector Unexpectedly Grows
By BETTINA WASSENER
HONG KONG — A closely-watched survey of manufacturing-sector activity in China on Thursday provided the latest indication that the world’s second-largest economy appears to have bottomed out after many months of slowing growth.
The early reading of the monthly purchasing managers’ index, compiled by the research firm Markit and released by the British bank HSBC, jumped to 50.1 points in August, from 47.7 in July, and easily beat analyst expectations. The increase, to a four-month high, also took the reading to just above 50 – the level that separates contraction and expansion.
The HSBC P.M.I. for China offers one of the earliest indications each month of how the economy is doing, and Thursday’s reading is likely to solidify expectations that a stabilization that had begun to show through in July has continued into August.
“It confirms that the economy has stabilized in the short term,” Zhang Zhiwei, China economist at Nomura in Hong Kong, wrote in an e-mailed commentary, adding that the downside risks for the second half of this year had declined.
A string of government measures aimed at supporting activity appears to have helped put a floor under the economy. The authorities have announced tax breaks for small businesses and steps aimed at speeding up railway construction in inland and poor areas, for example.
Longer-term, the gradual reacceleration of the U.S. economy could help improve demand for Chinese exports, analysts believe.
For now, however, the improvement in China’s prospects appears to have been largely driven by domestic demand, Mr. Zhang said, pointing to the fact that Thursday’s PMI showed new export orders still declining, but overall new orders picking up sharply.
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