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China manufacturing activity expands for fifth month

Category: Business

Published: 1st May 2012 03:17:36

China's manufacturing activity has expanded for the fifth month in a row, easing concerns about a sharp slowdown in the world's second-largest economy.

The official Purchasing Manager's Index (PMI) rose to 53.3 in April from 53.1 in March, the statistics bureau said.

China relies heavily on its manufacturing and export sector for growth.

There have been fears that a slowdown in key markets such as the US and Europe might hurt China's economy.

The PMI is a key indicator of manufacturing activity and a reading above 50 shows expansion.

The concerns of a global slowdown and its impact on China's economy have seen Beijing take steps to ease monetary policy in order 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, to try and stimulate lending in the country.

The move saw Chinese banks extend 1.01tn yuan ($160bn; £100bn) in new loans in March, much more than the forecast of 800bn yuan.

Analysts said the increased availability of credit had started to have a positive impact on the economy.

"There are signs of life in the economy and things should improve, all underpinned by an easing credit climate," said Ren Xianfeng of IHS Global Insight in Beijing.

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BBC News, 2012. China manufacturing activity expands for fifth month [Online] (Updated 1st May 2012)
Available at: http://www.ukwirednews.com/news/1425618/China-manufacturing-activity-expands-for-fifth-month [Accessed 29th Aug 2014]

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