Data released by the China Federation of Logistics and Purchasing (CFLP) on September 1 indicates that China's manufacturing sector Purchasing Managers' Index (PMI) stood at 54.0 percent in August, 0.7 percentage points higher than that of July.
As an internationally accepted important leading macroeconomic indicator, China's PMI has remained above 50 percent for six consecutive months, a critical point between economic expansion and contraction. On the same day, HSBC announced that China's PMI in August rose from the previous month's 52.8 to 55.1, setting a record 16 month high since April 2008.
A survey conducted by CFLP on over 700 manufacturers revealed that compared with July, only the supplier delivery time index dropped slightly while other indices all rose. Among them, the purchase price index, the import index and the purchase volume index increased the most, rising by over 2 percentage points.
"The fact that the PMI in August continued to increase slightly more than 50 percent indicates that China's economy will continue to recover. However current economic recovery remains in high uncertainty, so close attention should be paid to the future movement of the PMI," said Zhang Liqun, special analyst at CFLP.
HSBC's report shows that in August, China's manufacturing industry maintained output growth for the fifth consecutive month, with a growth rate at the second highest level since the index survey was launched in April 2004.
HSBC Chief Economist for China Qu Hongbin noted, "In August, the PMI for China's manufacturing industry rose to a 16-month record high, which reaffirmed that China's economic recovery is maintaining a strong development momentum. As various projects are at an advanced construction stage, domestic demand has increased markedly, leading to a significant rise in output and new order index, both of which approached the record high levels of 2005. Meanwhile, a significant increase in the export new order index implies that China's exports are likely to soon bottom-out. All these indicate that China's manufacturing industry should further improve in the coming few months.
By People's Daily Online
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