China’s manufacturing sector activity rose to its highest level in two years in January as factory production picked up momentum, preliminary results of a survey by Markit Economics showed Thursday.
The headline HSBC/Markit purchasing managers’ index rose to 51.9 in January from 51.5 in December. A PMI reading above 50 indicates expansion of the sector.
The manufacturing output index increased to a 22-month high of 52.2 in January from 51.9 in December. New orders continued to rise, albeit at a slower pace. At the same time, new export orders rebounded in January.
“Thanks to the continuous gains in new business, manufacturers accelerated production by additional hiring and more purchases,” said Hongbin Qu, Chief Economist at HSBC. “Despite the still tepid external demand, the domestic-driven restocking process is likely to add steam to China’s ongoing recovery in the coming months.”
In January, there was an increase in input price inflation, while output price inflation moderated.
After seven straight quarters of slowdown, the economic growth accelerated in the fourth quarter, with the gross domestic product growing 7.9 percent.
The International Monetary Fund on Wednesday maintained its forecasts for the Chinese economy. IMF predicts 8.2 percent growth for the economy this year and 8.5 percent growth in 2014.
According to official figures, the growth rate for the full-year of 2012 sank to a 13-year low as prolonged crisis in euro area and government measures to curb a property bubble at home hurt economic activity.
by RTT Staff Writer
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