ZCZC
BCN-11
CHINA-ECONOMY-INDICATOR
China factory activity accelerated in December: Caixin
BEIJING, Jan 2, 2018 (BSS/AFP) – Chinese factory activity accelerated in
December, according to independent data released Tuesday, a positive
indicator for the world’s second-largest economy to kick off the new year.
The Caixin Purchasing Managers Index (PMI) — an indicator of conditions at
small manufacturers — rose to 51.5 in December, up from 50.8 in November and
the highest reading since August.
The official PMI indicator of 51.6 for December was released on Sunday by
China’s National Bureau of Statistics and showed a slight deceleration from
November, although it largely maintained momentum.
A PMI figure above 50 represents growth while anything below points to
contraction.
Caixin’s index focuses on economic activity at small and medium sized
enterprises, and its continued strength may reflect the resilient global
demand for many of these exporting firms.
China’s exports saw solid growth during the final months of last year.
“Manufacturing production continued to increase across China at the end of
2017” Caixin said in a statement with data compiler IHS Markit.
“Manufacturing operating conditions improved in December, reinforcing the
notion that economic growth has stabilised in 2017 and has even performed
better than expected” Caixin analyst Zhengsheng Zhong wrote.
“We should not underestimate downward pressure on growth next year due to
tightening monetary policy and strengthening oversight on local government
financing.”
Caixin said firms used existing inventories of finished items to satisfy
some new orders and cut slightly their inventories of finished goods.
BSS/AFP/SR/1545 HRS