24/Jul/2014 - Last News Update: 08:59

China manufacturing on the mend, HSBC survey shows

Category: Business

Published: 23rd Apr 2012 05:26:22

China's manufacturing activity slowed less quickly in April than the previous month, a preliminary HSBC survey has showed.

The HSBC Purchasing Manager's Index (PMI) rose to 49.1 from 48.3 in March easing concerns of a sharp slowdown in China's economy.

There have been fears that slowing growth in key markets such as the US and eurozone may hurt China's economy.

China relies heavily on manufacturing and exports for growth.

The PMI is a key indicator of manufacturing activity. A reading below 50 shows contraction in the sector and the HSBC index has remained below that mark for six straight months now.

However, Markit Economic Research, which publishes the index, said the latest reading "pointed to a slower pace of deterioration than in March, largely reflecting slower rates of decline of manufacturing production and new orders."

The pace of both output and demand growth remains at a low level in an historical context”

The figures come just days after China reported that its economy expanded at an annual rate of 8.1% in the first three months of the year, the slowest pace of expansion in almost three years.

Prompted by concerns over the impact of a global slowdown on its economy, China's has been easing some of its policies in a bid to boost growth.

China's central bank has cut the amount of money that banks need to hold in reserves, twice in the past few months, in a bid to boost lending in the country.

Data out earlier this month showed that banks extended 1.01tn yuan ($160bn; £100bn) in new loans in March. much more than the forecast of 800bn yuan.

Hongbin Qu, chief economist China at HSBC said the latest PMI data indicated that "the earlier easing measures have started to work".

However Mr Qu added that despite the improvement in April, "the pace of both output and demand growth remains at a low level in an historical context."

He said that authorities need to take additional measures to ensure a sustained growth in the manufacturing sector.

BBC News External Link Show Citation

Latest News

Harvard Citation

BBC News, 2012. China manufacturing on the mend, HSBC survey shows [Online] (Updated 23rd Apr 2012)
Available at: http://www.ukwirednews.com/news/1423958/China-manufacturing-on-the-mend-HSBC-survey-shows [Accessed 24th Jul 2014]

News In Other Categories

  • Former ministers receive honours

    Three former ministers have been given knighthoods, while veteran Ken Clarke has been made a Companion of Honour.
  • Wildlife film-makers reveal tricks of the trade

    New camera technology is allowing wildlife film-makers to get ever more stunning shots. But can we believe everything we see on natural history programmes? And why do hyenas keep eating the cameras?
  • Anglesey hay barn fire burns for hours

    Firefighters spent over four hours tackling a hay barn blaze on Anglesey in the early hours.
  • Bristol Academy extends reach overseas with first foreign students

    With the doors to its brand new £1million training centre officially open, one of the UK's leading apprentice training providers, Bristol based S&B Automotive Academy, is showcasing its world-class facilities by launching a series of foreign student exchanges for the first time in its 41-year history. To get a flavour of what life is like as an apprentice in the UK, the Academy hosted 16 apprentice engineers and bus drivers from the G9 Automotive College in Hamburg, Germany, as part of a Europe-wide vocational training initiative called the ‘Leonardo Programme’ with support from the European Social Fund. In a reciprocal arrangement, S&B will be sending nine apprentices to Germany during February 2012 so that they can get an appreciation of life in the automotive industry on the Continent. A further three German exchange groups are being planned for next year. Designed to assist the development of vocational skills and training across Europe, including work placements for trainees, the Leonardo Programme has a budget of €1.75bn, which is helping to encourage UK organisations to work with their counterparts abroad. In what is expected to be another challenging year for employers in the UK automotive sector, S&B’s Chief Executive, Jon Winter, claims that the exchange initiative will bring many benefits to the Academy and its apprentices: “In a world of global automotive brands, it’s important for our learners to understand the international context of the industry they have chosen to make their career. This new exchange programme will enable apprentices and Academy staff alike to achieve a better understanding of the challenges and opportunities within the automotive arena in Europe. With the Academy’s influence also extending to the USA and Asia, there’s every possibility that this initiative could move further afield in the future.” Continued Winter: “The need for skilled technicians across the world is on the increase and we actively encourage our apprentices to look at broader horizons during their training. Many of them have already learned the phrase ‘Vorsprung durch Gelehrtheit’, quite simply, ‘Advancement through learning.” In the 2010/11 academic year, S&B doubled the number of successful Apprenticeships over the previous year with some 350 apprentices graduating from the Academy. At the same time, achievement levels reached an all-time high with an overall success rate of 85%. For those learners on the Advanced Apprenticeship three-year programme, success rates were even higher, at over 98%. PHOTO CAPTION: As part of their exchange visit, S&B Automotive Academy arranged for the German apprentices to visit Hampshire bus operator, Bluestar, at its Barton Park depot. The students are pictured with S&B’s Andy West (3rd right) and Steve Prewett, Bluestar’s Area Engineering Manager (2nd right). Ends http://www.sandbaa.com
  • Glasgow 2014: Scottish interest at-a-glance

    It's Games time in Glasgow and on day one Scots are taking to the pool, the cycling track and the judo mats, aiming to get the host nation off to a winning start.
  • Google to face data watchdogs over 'right to be forgotten'

    Google is to meet data regulators from across the European Union to discuss the implications of the recent "right to be forgotten" ruling.