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China's manufacturing PMI drops to 50.5 pct

English.news.cn   2014-02-01 13:18:56
 • China's PMI for the manufacturing sector dropped to a six-month low of 50.5 percent in January.
 • January continued December's decline and indicated the lowest factory activity since August.
 • Analysts expect the focus of the authorities is now turned to forging a more sustainable model.

A woman works in a clothing factory at Shahe Town of Ganyu County in Lianyungang City, east China's Jiangsu Province, Oct. 13, 2013. (Xinhua/Si Wei)

BEIJING, Feb. 1 (Xinhua) -- China's purchasing managers' index (PMI) for the manufacturing sector dropped to a six-month low of 50.5 percent in January, according to official data released on Saturday.

January continued December's decline and indicated the lowest factory activity since August while marking the 16th straight month above the boom-bust line, according to a statement jointly released by the National Bureau of Statistics (NBS) and the China Federation of Logistics and Purchasing.

In January, the sub-index for production stood at 53.0 percent, down 0.9 percentage points from December but still 0.2 percentage points higher than last year's average. The sub-index for new orders lost 1.1 percentage points to 50.9 percent, said the statement.

The sub-index for purchase quantity moved down 1.7 percentage points to 51.0 percent in January, while the sub-index for new export orders stood at 49.3 percent, down 0.5 percentage points from December.

A PMI reading below 50 indicates contraction, while one above 50 signals expansion.

Major PMI indexes all declined in January, indicating downward pressure on the economy, but in general, the country's economy is still expecting stable growth, said Zhang Liqun, an analyst with the Development Research Center of the State Council.

Falling new orders showed the growing impact of market demand restraints and enterprise competition and restructuring are expected in the future, Zhang said.

The HSBC/Markit China manufacturing PMI for January dipped to 49.5 from 50.5 in December, the first deterioration of operating conditions in the country's manufacturing sector since July.

Qu Hongbin, chief China economist with HSBC, described the dynamic as "a soft start to China's manufacturing sectors in 2014, partly due to weaker new export orders and slower domestic business activities during January."

Factory activities in January were mainly dragged down by accelerating overcapacity easing and a cut in production ahead of China's lunar new year, said Zhao Qinghe, a senior analyst with NBS.

Almost all January PMI data dropped from December in the past four years, Zhao pointed out.

The sub-index for production and business expectation rose by 1.9 percentage points to reach 51.3 percent, indicating strengthening enterprises' confidence for future economic growth.

Zhao expects an improving business environment for manufacturers and more robust play of market forces as China continues to push new reforms to restructure its economy.

The government has yet to announce its 2014 growth target, which analysts widely expect to be set at 7 percent or 7.5 percent.

Although the headline GDP growth remains stable, analysts expect a further moderation as the focus of the authorities is now turned to forging a more sustainable model and pushing ahead with various reforms.

Related:

News Analysis: A shaky start, China enters 2014 with reform hopes

BEIJING, Jan. 27 (Xinhua) -- Although China's economy managed to end a somewhat turbulent 2013 on solid footing, a shaky start this year, as shown in new manufacturing data, has renewed worries over its growth prospects.

The flash reading for the China manufacturing Purchasing Managers' Index (PMI) dropped to 49.6 in January, falling below the 50-threshold that demarcates expansion and contraction and marking the lowest point in six months, a preliminary HSBC survey showed. Full story

China confident in meeting economic growth target

BEIJING, Jan. 22 (Xinhua) -- China's top economic planning body expressed confidence on Wednesday in the country fulfilling the national economic growth rate goal included in its 12th Five Year Plan (2011-2015).

"Given current economic trends, there will be no problem at all in China realizing 7-percent average annual economic growth at the end of the 12th Five Year period," said Xu Lin, director of the Department of Development Planning under the National Development and Reform Commission (NDRC), during the NDRC's monthly press conference. Full story

Xinhua Insight: China economy grows 7.7 pct in 2013, beating government target

BEIJING, Jan. 20 (Xinhua) -- China's economy grew 7.7 percent in 2013, the same as 2012, overshooting the government target of 7.5 percent, according to the National Bureau of Statistics (NBS) on Monday.

Gross domestic product (GDP) totalled 56.9 trillion yuan (9.3 trillion U.S. dollars), the NBS said. Full story

China PMI lowest since Aug. 2011: survey

BEIJING, Jan. 6 (Xinhua) -- Business activity in China's services sector fell significantly in December to its lowest level since August of 2011, according to results of a private sector survey released on Monday.

The HSBC/Markit China services purchasing managers' index (PMI) posted at 50.9 in December, notably down from 52.5 in November. Full story

Chinese economy to maintain stable growth in 2014 in spite of low PMI

By Shen Qing

BEIJING, Jan. 5 (Xinhuanet) -- Chinese economy will maintain stable growth in 2014, in spite of a four-month low Purchasing Managers' Index PMI.

According to data jointly released by the National Bureau of Statistics (NBS) and the China Federation of Logistics and Purchasing (CFLP), the PMI for December further retreated to 51 from 51.4 in November. Full story

 

Editor: Tang Danlu
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