Chinese factories up output through April
CHINA’S manufacturing activity expanded again in April, official survey data showed yesterday, hinting at a renewed recovery.
The state’s purchasing managers’ index (PMI) hit 53.3 last month, up on March’s 53.1 and February’s 51, showing output accelerating away from the “no change” level of 50.
The output component jumped from 55.2 to 57.2, while new export orders increased from 51.9 to 52.2, though employment growth remained low and steady at 51.
“These all suggest that external demand continued to improve, but domestic demand may have weakened,” said Nomura economist Zhiwei Zhang.
“The PMI is showing tentative signs of an economic recovery, but we believe policy easing is still necessary to secure momentum.”
China’s economy has slowed sharply over the last year, registering annualised growth of 8.1 per cent in the first quarter of the year, down from 8.9 per cent in the previous three months and the fifth consecutive quarterly slowdown.
The World Bank cuts its forecast for 2012’s growth to 8.2 per cent last month, while the Chinese government is targeting a 7.5 per cent expansion, its lowest level in eight years.
However, the relatively healthy PMI data suggests the country may be heading for a “soft,” rather than “hard” landing.
The authorities last month took a further step in integrating China with the world economy, increasing the band in which the yuan can move each day.