CapitalVue reported that Chinese manufacturing growth further strengthened in January, with the Purchasing Managers' Index rising 0.2 percentage point MoM to 50.5.
The PMI had fallen below 50 for the first time since March 2009 in November last year, when the figure fell 1.4 percentage points from October to 49.
A reading of more than 50 indicates expansion, while a reading below 50 suggests contraction.
Nine industries out of the 20 tracked, such as the tobacco and beverage production sectors, posted PMI readings of more than 50, while the fabricated metal products, wood processing and furniture manufacturing, and the ferrous metal smelting and rolling sectors, had PMI readings of below 50.
According to analyst, Zhang Liqun, the gains in the new order and raw material inventory sub-indices are indicative of a recovery in industrial production, while the dip in the sub-index for new export orders reflects the fall in external demand.
The sub index for new orders rose 0.6 percentage point from December to 50.4, and 10 industries, including the tobacco, agricultural processing and food production, beverage production, and apparel sectors, had readings of more than 50.
The paper making, transportation equipment production, and electrical equipment production sectors had readings of below 50.
The production sub index rose 0.2 percentage point month-on-month to 53.6, with 11 industries posting readings of more than 50.
Several sectors, such as the tobacco, beverage production, agricultural processing and food production, special equipment production, crude oil and coking coal refining industries, had production sub-index readings of 50.
The chemical fiber, rubber and plastic, and paper-making industries posted production sub index readings of below 50.
The new export orders sub-index fell 1.7 percentage points month-on-month to 46.9 in January, with 10 industries, such as the beverage production and wood processing and furniture manufacturing sectors, recording readings of above 50.
The pharmaceutical, general equipment production and fabricated metal products sectors, along with seven other industries, posted readings of below 50.
The import sub index was down 2.2 percentage points from December to 46.9 in January. Seven industries, including the crude oil and coking coal refining, beverage production, and chemical raw materials production sectors posted readings of above 50.
The finished goods inventory sub-index dropped 2.6 percentage points month-on-month to 48 in January, while the purchasing price sub-index in January hit 50, up 2.9 percentage points from December.
(Sourced from CapitalVue)
