China manufacturing experiences spike after slump
Productivity now at three-month high; analysts cite economic momentum
After a three-month slump, productivity and manufacturing in China has enjoyed a spike. While things seem to be on an even keel now, there still lingers the three slowest months ever that the Asian giant experienced earlier this year.
Chinese policymakers 'have stepped up to the plate' by taking steps to boost economic growth by way of infrastructure spending and monetary easing.
The brighter economic outlook comes a week before the once-in-a-decade leadership change.
China's economy expanded 7.4 percent in the July to September period, which was its slowest pace in three years. Manufacturing activity contracted in August and September, among the backdrop of this larger economic slowdown.
Chinese policymakers "have stepped up to the plate" by taking steps to boost economic growth by way of infrastructure spending and monetary easing.
Analysts said those moves were starting to affect the economy positively. "The return of the PMI to above 50 suggests economic momentum has indeed picked up," Zhiwei Zhang of Nomura said in an email.
"It indicates the effect of policy easing may have been stronger than the consensus expected."
Other data pointing towards a recovery includes acceleration in exports, retail sales and industrial production.
A separate, private survey of manufacturing in China by HSBC also showed an improvement, although the reading remained in negative territory.
The HSBC purchasing managers' index showed a final reading of 49.5 in October, which was an increase from 47.9 in September.
"October's final PMI rose to an eight-month high, implying that China's industrial activity continues to bottom out following a modest pick-up last month," Qu Hongbin, chief China economist at HSBC, said in a statement.
How China's leaders handle the slowdown has been a political balancing act for China's leaders as they embark on a leadership change.
Strong growth has long been a point of pride for the current leaders, and analysts pointed out they would be eager to get the economy back on track before the handover.
© 2012, Catholic Online. Distributed by NEWS CONSORTIUM.
- - -
Pope Benedict XVI's Prayer Intentions for January 2013
General Intention: The Faith of Christians. That in this Year of Faith Christians may deepen their knowledge of the mystery of Christ and witness joyfully to the gift of faith in him.
Missionary Intention: Middle Eastern Christians. That the Christian communities of the Middle East, often discriminated against, may receive from the Holy Spirit the strength of fidelity and perseverance.
Keywords: China, productivity, economic slowdown, leader change
Rate This Article
Leave a Comment
More Asia Pacific News
- Chinese hackers gained valuable information in Google breech years ago
- Savage and Deadly, Cyclone Mahasen batters Bangladesh, Sri Lanka, Myanmar, moves into India
- Indian families go to drastic measures to protect daughters from rape
- Organ Trafficking: Indian family says their young daughter was killed for organ harvesting
- NK's Kim Jong-Un appoints THIRD army chief in less than two years
- Astonishing miracle in the heinous Bangladesh building collapse: 'God is so merciful!'
- Children as young as five years old forced to work in India's coal mines
- China deals major financial blow to Kim Jong Un
- Five killed in sharp, violent volcanic eruption in the Philippines
- Fr. Paul Schenck: Finding Living Faith on Catechetical Sunday
- The Movie Yellow: Incest as 'Normal' and Cassavates's Slides Into the World of Woes
- The Chicago School Teachers Strike Reveals the Need For School Choice
- The Sexual Barbarians and the Dissolution of Culture
- The Happy Priest Challenges Us to Ask: Who is Jesus to Me?
- Michael Coren on Canadian Public Schools: Teachers, leave those kids alone
- We Cannot Ignore Our Consciences: Cardinal Dolan On Religious Liberty
- In the Face of Danger, Successor of Peter Travels to Lebanon as a Messenger of Peace
- Reflections on the Dignity and Vocation of Women: Who or What?