HSBC survey shows China manufacturing picking up
China's manufacturing activity may have picked up some momentum in April, according to a preliminary survey by HSBC released Monday, easing concerns about a possible slowdown of the second biggest economy of the world.
The manufacturing purchase manager index (PMI) released by HSBC showed that the manufacturing sector slowing less quickly than in the previous month.
But the reading, though a two-month high, indicates that the growth in key markets such as the US and eurozone continues to remain vulnerable, hurting China's economy.
A reading above 50 suggests expansion, while a reading below 50 indicates contraction.
China relies heavily on manufacturing and exports for growth.
"Since the April flash PMI ticked higher, this suggests that previous easing measures have started to work and should therefore ease concerns of a sharp growth slowdown," said Qu Hongbin, chief economist at HSBC China and co-head of Asian Economic Research at HSBC.
"In an historical context, the pace of both output and demand growth has remained at a low level and the job market is under pressure. This calls for additional easing measures in the coming months. We expect monetary and fiscal easing to speed up in the second quarter," Xinhuq quoted Qu as saying.
The figures come just days after China reported that its economy expanded at an annual rate of 8.1 per cent in the first three months of the year, the slowest pace of expansion in almost three years.
Source: The Asia News.Net
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