Chi­na’s ma­nu­fac­tu­ring PMI grows at fas­test pa­ce in over 2 ye­ars

Times of Suriname - - ENGELS -

CHI­NA - Chi­na’s ma­nu­fac­tu­ring sec­tor posted its best per­for­man­ce in mo­re than two ye­ars, ad­ding to signs that the world’s se­cond-lar­gest eco­no­my is sta­bi­li­zing, of­fi­ci­al da­ta showed.

Chi­na’s ma­nu­fac­tu­ring Pur­cha­sing Ma­na­gers’ In­dex (PMI) ro­se to 51.2 in Oc­to­ber from 50.4 in Sep­tem­ber, well abo­ve mar­ket ex­pecta­ti­ons and the hig­hest le­vel sin­ce Ju­ly 2014, ac­cor­ding to da­ta re­lea­sed by the Na­ti­o­nal Bu­reau of Sta­tis­tics (NBS). The ma­nu­fac­tu­ring PMI has stay­ed abo­ve the 50-point mark, which de­mar­ca­tes ex­pan­si­on from con­trac­ti­on, for the third month in a row.

The sub-in­dex for pro­duc­ti­on ex­pand­ed at a fas­ter pa­ce, ri­sing to 53.3 from 52.8 in Sep­tem­ber and mar­king the hig­hest le­vel sin­ce Sep­tem­ber 2014.

The sub-in­dex for new or­ders mo­ved up to 52.8 from the pre­vious month’s 50.9. That hel­ped off­set weak­ness in new ex­port or­ders, which ca­me in at 49.2, down from 50.1 in Sep­tem­ber.

Along with the boost in pro­duc­ti­on and new or­ders, the bu­si­ness ex­pecta­ti­ons me­a­su­re jum­ped to 58.5, the hig­hest le­vel seen sin­ce April.

NBS sta­tis­ti­ci­an Zhao Qing­he at­tri­bu­ted the pick-up in Oc­to­ber’s ma­nu­fac­tu­ring PMI to im­pro­ving do­mestic de­mand, boo­m­ing new growth dri­vers such as hi-tech in­du­stries, and equip­ment ma­nu­fac­tu­ring sec­tors, ac­ce­le­ra­ting sup­ply-si­de struc­tu­ral re­form and hig­her com­mo­di­ty pri­ces. Ac­cor­ding to the NBS da­ta, the non-ma­nu­fac­tu­ring PMI ex­pand­ed in Oc­to­ber at a fas­ter pa­ce to 54 from 53.7 in Sep­tem­ber, mar­king the hig­hest le­vel this year.

The non-ma­nu­fac­tu­ring su­bin­dex for new or­ders fell to 50.9 from 51.4 in Sep­tem­ber, but stay­ed in ex­pan­si­o­na­ry ter­ri­to­ry for the se­cond con­se­cu­ti­ve month, in­di­ca­ting de­mand in the sec­tor con­ti­nued to im­pro­ve, Zhao said.

The da­ta ca­me be­fo­re the re­lea­se of the Caixin ma­nu­fac­tu­ring PMI, a pri­va­te gau­ge of ma­nu­fac­tu­ring ac­ti­vi­ty, which showed the in­dex ex­pand­ed at its fas­test pa­ce sin­ce Ju­ly 2014.

The Caixin ma­nu­fac­tu­ring PMI in­crea­sed to 51.2 in Oc­to­ber from 50.1 the pre­vious month, ac­cor­ding to a sur­vey con­duc­ted by fi­nan­ci­al in­for­ma­ti­on ser­vi­ce pro­vi­der Mar­kit and spon­so­red by Caixin Me­dia.

Eco­no­mists said the pick-up in both of­fi­ci­al and pri­va­te PMIs means Chi­na’s eco­no­my is hea­ding in­to the fourth quar­ter with in­crea­sed mo­men­tum, pro­vi­ding po­li­cy ma­kers with mo­re room to con­ti­nue to shift their fo­cus to­ward the con­trol of fi­nan­ci­al and re­al es­ta­te risks.

The cen­tral govern­ment should en­su­re rea­so­na­ble fis­cal ex­pen­di­tu­re and en­han­ce sup­port for un­der­de­vel­o­ped are­as and pro­vin­ces needing fi­nan­ci­al sup­port, ac­cor­ding to a sta­te­ment re­lea­sed last week af­ter a Po­li­ti­cal Bu­reau of the Com­mu­nist Par­ty of Chi­na (CPC) Cen­tral Com­mit­tee mee­ting on eco­no­mic af­fairs chai­red by Xi Jin­ping, ge­ne­ral se­cre­ta­ry of the CPC Cen­tral Com­mit­tee. At the sa­me ti­me, the sta­te­ment ad­ded, it must main­tain a pro­per li­qui­di­ty le­vel and gu­ard against as­set bub­bles and fi­nan­ci­al risks. Chi­na’s eco­no­my grew 6.7 per­cent in the third quar­ter of 2016, hol­ding stea­dy with Q1 and Q2 and boos­ting sen­ti­ment that this year’s an­nu­al GDP tar­get of 6.5 per­cent to 7 per­cent is achie­va­ble.

Chen Zhong­tao, an ana­lyst with Chi­na Lo­gis­tics In­for­ma­ti­on Cen­ter, said sup­por­ti­ve po­li­cies should con­ti­nue to main­tain the sta­bi­li­za­ti­on of the eco­no­my, warning that gro­wing ex­ter­nal un­cer­tain­ties and en­ter­pri­ses’ hig­her ope­ra­ting costs cau­sed by com­mo­di­ty pri­ce ri­ses would weigh on growth. (Xin­hu­a­­to: xin­hu­a­

A wor­ker is seen at an off­sho­re oil en­gi­nee­ring com­pa­ny in Qing­dao, east Chi­na’s Shandong Pro­vin­ce.

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