Chinese Manufacturing Shows April Turnaround

by Lloyd's List - last modified Apr 24, 2012 01:54 PM

HSBC Flash China Manufacturing Purchase Managers’ Index monthly survey, which polls 420 manufacturing executives with operations in the People’s Republic, recorded a PMI preliminary figure of 49.1 for April, a two-month high, and up from 48.3 in March.

The PMI quizzes purchasing managers about buying materials for their manufacturing supply chains, to give an indicator of companies’ growth expectations.

The figure for manufacturing output stood at 49.1, up from 47.3 in March, also a two-month high.

While the figures are up, they nevertheless indicate that China’s manufacturing sector is contracting, but the pace of contraction is less severe month on month, as an index figure below 50 represents contraction.

HSBC chief economist for China Hongbin Qu said: “As the April PMI ticked higher, this suggests that the earlier easing measures have started to work and hence should ease concerns of a sharp growth slowdown.

“That said, the pace of both output and demand growth remains at a low level in a historical context and the job market is under pressure.

“This calls for additional easing measures in the coming months. We expect monetary and fiscal easing to speed up in second quarter.”

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