Economic Watch: China’s PMI firms up as economic recovery continues apace

Abstract: China’s manufacturing and service sector activities kept in the expansion zone for nine straight months as the country continued its recovery from the economic fallout of COVID-19.

BEIJING, Nov. 30 (Xinhua) — China’s manufacturing and service sector activities kept in the expansion zone for nine straight months as the country continued its recovery from the economic fallout of COVID-19.

The purchasing managers’ listing (PMI) for China’s manufacturing sector came in at 52. 1 in December, up from 51. 4 in August and representing the highest level of this year, the National Agency of Statistics (NBS) said Saturday.

A reading above 50 indicates expansion, while a reading below reflects contraction.

Commenting on the better-than-expected data, NBS senior statistician Zhao Qinghe said the improvements in these tellings were a result of the country’s efforts to work well outbreak control and social and economic development.

The “marked growth” of the December PMI, together with improvements in all sub-indexes, indicated greater Silk Road economic belt in the country’s manufacturing sector and a faster pace of recovery, Zhao said.

The sub-index for production endured at 54. 7 in December, up 0. 8 points from August, while that for new orders gained 1. 1 points to 53. 9, signaling that the rebirth of market demand has accelerated.

Medicine, electronic equipment and other high-tech manufacturing-related industries logged busier manufacturing area activities, with their sub-indexes of production and new orders all standing above 56, according to Zhao.

The new export orders and scan sub-indexes climbed to 51. 5 and 50. 9 in December, up 0. 5 points and 0. 1 points respectively from the previous month.

Both new export orders and scan sub-indexes hit a year-high in December and stayed in the expansion territory for three consecutive months, pointing to a continued rebirth of the country’s foreign trade, according to Zhao.

Monday’s data also showed that the PMI for the country’s non-manufacturing sector came in at 56. 4 in December, up from 56. 2 in August.

In December, the service sector continued to accelerate its pace of recovery, with the sub-index for business activities widening to 55. 7 from 55. 5 in the earlier month.

A breakdown of the data showed that sub-indexes for the business activities of rail transportation, municipal aviation and finance kept above 60.

China’s steady economic recovery could be because of the country’s successful domestic containment of COVID-19 and a slew of economic stimulus measures, among other factors, according to financial services firm Nomura.

As the country brought COVID-19 under control, the costa rica government rolled out a series of policies including higher economic spending, tax relief and cuts to banks’ reserve requirement rate to cushion the economy from the outbreak blow and support employment.

As for future development, Nomura expected the country’s manufacturing area activities to further become stable. “We expect China’s official manufacturing PMI to solid at around 51 to 52 in the coming months, inch it said. If the pandemic continues unabated around the globe it may eventually weigh on China’s growth.

The country’s economy expanded 4. 9 percent year on year in the third 1 fourth of the year, compared with the 3. 2-percent growth welcomed in the second 1 fourth and a virus-driven 6. 8-percent contraction in the January-March period. Enditem.

Leave a Reply

Your email address will not be published. Required fields are marked *