China manufacturing pick up slightly in June

AFP, BEIJING: Chinese manufacturing activity saw a slight improvement in June, official data suggested yesterday, but analysts said more stimulus to the world’s number two economy would likely be needed to re-energise the sector.
The official Purchasing Managers’ Index (PMI) released by the National Bureau of Statistics (NBS) came in at 50.2 last month, matching May’s six-month high.
The index, which tracks activity in factories and workshops, is seen as a key barometer of the country’s economic health. A figure above 50 signals growth, while anything below indicates contraction.
Production increased steadily in June with high-technology and consumer product-related industries picking up, said senior NBS analyst Zhao Qinghe in a statement.
But “companies’ intrinsic growth momentum was still insufficient as demand from both domestic and foreign markets remained relatively weak”, Zhao said.
“The difficulties faced by firms in their production and business management are yet to be mitigated effectively,” Zhao said, adding more companies complained about limited liquidity.
A separate, independent survey sponsored by British banking giant HSBC was less positive, showing manufacturing conditions continued to deteriorate in June, albeit at a slower rate.
Its final PMI figure registered 49.4 in June, up slightly from May’s 49.2 and the strongest since 49.6 in March, as overall demand improved tentatively, said a statement released by Markit, an information services provider that compiled the survey.
But it was lower than the preliminary June reading of 49.6 and was the fourth consecutive month that HSBC’s gauge has indicated contraction.
The figure “pointed to a further decline in the health of the manufacturing sector in June”, Markit economist Annabel Fiddes said in the statement.

China manufacturing pick up slightly in June

AFP, BEIJING: Chinese manufacturing activity saw a slight improvement in June, official data suggested yesterday, but analysts said more stimulus to the worlds number two economy would likely be needed to re-energise the sector. The official Purchasing Managers Index (PMI) released by the National Bureau of Statistics (NBS) came in at 50.2 last month, matching Mays six-month high. The index, which tracks activity in factories and workshops, is seen as a key barometer of the countrys economic health. A figure above 50 signals growth, while anything below indicates contraction. Production increased steadily in June with high-technology and consumer product-related industries picking up, said senior NBS analyst Zhao Qinghe in a statement. But companies intrinsic growth momentum was still insufficient as demand from both domestic and foreign markets remained relatively weak, Zhao said. The difficulties faced by firms in their production and business management are yet to be mitigated effectively, Zhao said, adding more companies complained about limited liquidity. A separate, independent survey sponsored by British banking giant HSBC was less positive, showing manufacturing conditions continued to deteriorate in June, albeit at a slower rate. Its final PMI figure registered 49.4 in June, up slightly from Mays 49.2 and the strongest since 49.6 in March, as overall demand improved tentatively, said a statement released by Markit, an information services provider that compiled the survey. But it was lower than the preliminary June reading of 49.6 and was the fourth consecutive month that HSBCs gauge has indicated contraction. The figure pointed to a further decline in the health of the manufacturing sector in June, Markit economist Annabel Fiddes said in the statement.