Chinese manufacturing sector sees highest growth in 13 months
Irish Sun Tuesday 1st May, 2012
• Concerns about Chinese slowdown eased
• Manufacturing activity rises for the fifth month in row
• PMI rises to 53.3 in April, in March it was 53.1 and 51.0 in February
BEIJING - Finally there is some good news about the second biggest economy of the world with China's manufacturing sector witnessing a 13-month high growth in April indicating that its economy may have turned the corner.
According to official data released by the statistics bureau Tuesday, China's manufacturing activity expanded for the fifth month in a row as the official Purchasing Manager's Index (PMI) rose to 53.3 in April from 53.1 in March. In February, it was 51 - a reading above 50 indicates expansion, but a reading below 50 suggests contraction.
The latest reading has somewhat eased concerns about a feared slowdown of China's economy as the world's largest populated nation relies heavily on its manufacturing and export sector for growth.
There were fears that a slowdown in key markets such as the US and Europe may have been hurting China's economy.
The growth slowed down to 8.9 per cent in the last quarter of the last fiscal after China hiked interest rates and announced measures to curb rising inflation.
Dariusz Kowalczyk of Credit Agricole CIB said that the fresh figures indicate that the growth will pick up but not as fast as it was in the past years.
"The message is that Chinese manufacturing is growing, not as fast as in years past but faster than in the fourth quarter last year and enough to achieve the government's growth target for the year," Kowalczyk was quoted as saying by the BBC.
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