Subscribe free to our newsletters via your
. Earth Science News .

China manufacturing hits nine-month low: HSBC
by Staff Writers
Beijing (AFP) Aug 23, 2012

China's manufacturing activity fell to a nine-month low in August as firms struggled with global woes, providing further impetus for Beijing to beef up economic stimulus efforts, HSBC said Thursday.

Preliminary figures from the British banking giant's closely watched purchasing managers' index (PMI), which gauges nationwide manufacturing activity, hit 47.8 this month, the lowest since November, HSBC said in a statement.

A PMI reading above 50 indicates expansion, while a reading below 50 points to contraction.

The preliminary result, down from a final reading of 49.3 in July, showed that Chinese manufacturers are still wrestling with declining overseas demand amid the slowing global economy, said Qu Hongbin, a Hong Kong-based economist with HSBC.

"Falling orders dragged down the August flash PMI to a nine-month low, suggesting Chinese producers are still struggling with strong global headwinds," he said in the statement.

New export business declined at its sharpest rate since March 2009, HSBC said, without giving a figure.

"To achieve the stated policy goal of stabilizing growth and the jobs market, Beijing must step up policy easing to lift infrastructure investment in the coming months," Qu said.

HSBC is scheduled to release the final PMI for this month on September 3.

Zhang Zhiwei, an economist with Nomura International in Hong Kong, said that the lacklustre PMI reading suggested economic momentum likely remained weak in August and agreed that policy makers would probably be forced to move again.

"Weak PMIs will likely put more pressure on the People's Bank of China to loosen monetary policy by cutting the reserve requirement ratio," he said in a research note, referring to a step aimed at encouraging lending by commercial banks.

The People's Bank of China, the central bank, "would also support local governments in their initiatives to promote growth through investment projects," he added.

China's economy grew 7.6 percent in the second quarter of this year, its slowest pace in more than three years.

Key economic data released earlier this month for July -- including trade, industrial output and retail sales figures -- pointed to continued weakness in the world's number two economy and raised hopes for further monetary easing.

Still, Chinese Premier Wen Jiabao has expressed confidence that the economy would stay on track and be able to meet targets this year, including annual growth of at least 7.5 percent.

Authorities have cut interest rates and lowered reserve requirements for banks in a bid to spur lending to prop up the economy.

The country has also moved to encourage more government investment, though it has stopped short of the massive stimulus package launched in the wake of the global financial crisis in 2008.

This week, China's central bank injected a net 278 billion yuan ($43.8 billion) into the money market through its open-market operations, Dow Jones Newswires reported Thursday.

That marked the biggest weekly liquidity injection in seven months and shows the bank is intensifying efforts to ease liquidity conditions and boost the economy.


Related Links
The Economy

Comment on this article via your Facebook, Yahoo, AOL, Hotmail login.

Share this article via these popular social media networks DiggDigg RedditReddit GoogleGoogle

Memory Foam Mattress Review
Newsletters :: SpaceDaily :: SpaceWar :: TerraDaily :: Energy Daily
XML Feeds :: Space News :: Earth News :: War News :: Solar Energy News

Hong Kong sets date for yuan futures trading
Hong Kong (AFP) Aug 22, 2012
The operator of the Hong Kong stock exchange said Wednesday that it plans to offer trading in Chinese currency futures from the middle of next month. Hong Kong Exchanges and Clearing Limited (HKEx) will introduce futures in the renminbi (RMB), also known as the yuan, on September 17, it said - the first offshore futures contracts deliverable in the currency. HKEx hopes the move, first a ... read more

Haiti demolishes quake-ruined presidential palace

Record radiation in fish off Japan nuclear plant

Raytheon mobile app allows first responders to use PCs, tablets and smartphones as "virtual radios"

US allows NGOs to send quake relief funds to Iran

Scientists shed light on glowing materials

New space-age insulating material for homes, clothing and other everyday uses

Global tablet sales to top 100 million in 2012: survey

Next Generation 3-D Theater: Optical Science Makes Glasses a Thing of the Past

Women could play key role in correcting crisis in clean drinking water and sanitation crisis

Nature study highlights many paths to ocean health

Dinosaur bends caused by prolonged diving

Researchers reveal behaviors of the tiniest water droplets

Google online maps embark on Arctic adventure

Man partly to blame for Antarctic ice shelf collapse: study

Arctic cap on course for record melt: US scientists

First Chinese ship makes trip to Atlantic via Arctic route

Russia to 'considerably' cut grain exports amid drought

Row escalates over sale of Burgundy estate to Chinese

UCSB scientists examine effects of manufactured nanoparticles on soybean crops

$15 million 'gutter oil' court case begins in China

Heavy rain, floods kill 26 in Pakistan: officials

N. Korea to talk to S. Korean NGOs about flood aid

Haiti faces new tragedy as Storm Isaac swells

Forty-four killed since July in Niger floods: UN

U.S. AFRICOM wants more guard partnerships

South Sudan's military chief Paulino Matip dies

Kenyan, Ugandan troops battle al-Shabaab

S.Africa police say mine killings were self-defence; 34 dead

Once again with feeling: Australian science tugs heart-strings

Common parasite may trigger suicide attempts

Brain scans don't lie about age

Evolutionary increase in size of the human brain explained

The content herein, unless otherwise known to be public domain, are Copyright 1995-2014 - Space Media Network. AFP, UPI and IANS news wire stories are copyright Agence France-Presse, United Press International and Indo-Asia News Service. ESA Portal Reports are copyright European Space Agency. All NASA sourced material is public domain. Additional copyrights may apply in whole or part to other bona fide parties. Advertising does not imply endorsement,agreement or approval of any opinions, statements or information provided by Space Media Network on any Web page published or hosted by Space Media Network. Privacy Statement