Thursday, 21 March 2013

China manufacturing activity speeds up post holidays

A worker at a factory in China


Manufacturing activity in China picked up speed in March, an initial HSBC survey has indicated, adding to hopes of a sustained recovery in its economy.

The preliminary reading of HSBC's Purchasing Managers Index (PMI) rose to 51.7, from 50.4 in February.

Numbers for March are seen as a true indicator for the sector, as the Chinese New Year holidays skew the data in January and February.

China has been taking measures to boost manufacturing, a big driver of growth.

The PMI is a key indicator of the activity in the sector and a reading above 50 shows expansion.

Qu Hongbin, chief economist for China at HSBC said the rebound in the sector was fuelled by "stronger new orders and production growth".

"This implies that the Chinese economy is still on track for gradual growth recovery," he added.

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