Manufacturing continues expanding

Updated: 2012-03-01 13:48

By Chen Jia (chinadaily.com.cn)

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BEIJING — China's manufacturing activities bounced back to a five-month peak in February, supported by quickened production, indicating a stable expansion of the whole economy along with the global business upswing.

The Purchasing Managers Index (PMI), a main gauge to show the operational situation of the manufacturing sector, continued to rise, hitting 51 last month, 0.5 points higher than in January, the National Bureau of Statistics and the China Federation of Logistics and Purchasing jointly revealed on Thursday.

It has stayed above the marginal 50 points for three consecutive months after it dropped to a 32-month low of 49 in November 2011. A reading higher than 50 means expansion, while below 50 shows deterioration.

"The continually increasing PMI proves the nation is undergoing an ongoing economic rebound, propped up by active industrial production," said Zhang Liqun, a research fellow with the Development Research Center of the State Council, or China's cabinet.

The sub-index of industry output climbed to 53.8 in February from the 53.6 in the first months this year, reaching its highest in six months.

Unlike the January growth, which was mainly driven up by the consumer market, the new rise in February was fueled by expansion of the electrical and mechanical equipment manufacturing industry, a report from the logistics federation said.

In the meantime, the new export orders index increased faster to 51.1, 4.2 points higher than the January reading. It was the first time it had gone above 50 since August 2011.

It may be a sign of a re-warming export trend thanks to rising US manufacturing production and the improved situation of the indebted eurozone, said the federation.

However, Zhang warned that the surging input prices index may indicate inflationary pressure, adding a threat to future economic growth.

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