Accessibility/Mobile Features
Skip Navigation
Skip to Content
Editorial News
Business
Classified Sites

The Canadian Press - ONLINE EDITION

Surveys show China manufacturing improving but growth weak

BEIJING, China - A survey shows Chinese manufacturing grew in June for the first time in six months but the expansion was weak.

HSBC Corp. said Tuesday its purchasing managers index rose to 50.7 from May's 49.4 on a 100-point scale on which numbers above 50 show growth. A separate index by an industry group, the China Federation of Logistics and Purchasing, rose to 51 from May's 50.8.

HSBC said its survey found output rose for the first time since January but the rate of improvement was "only slight and weaker than the historical average."

Weakness in manufacturing has posed a challenge to Chinese leaders' efforts to nurture growth based on domestic consumption and reduce reliance on trade and investment.

Leaders have ruled out a large-scale stimulus, but facing the risk of politically dangerous job losses, they have launched targeted measures to prop up growth that slumped to 7.4 per cent in the first quarter of the year. Housing prices and sales also have declined, putting pressure on construction and other industries.

The ruling Communist Party's official growth target this year is 7.5 per cent but leaders have tried to play down expectations, saying the expansion might come in under that level.

"The June PMI continued to increase, indicating that steady economic growth has basically been established," said economist Zhang Liqun in a statement issued by the Federation of Logistics and Purchasing.

HSBC said its survey found the strongest growth in new orders in 15 months. Export orders rose for a second month but at a weaker pace than May's 49-month high. Employment declined for an eight straight month but at a slower pace than in May.

Smaller private enterprises are given greater weight in the HSBC survey while big state companies predominate in the official survey.

  • Rate this Rate This Star Icon
  • This article has not yet been rated.
  • We want you to tell us what you think of our articles. If the story moves you, compels you to act or tells you something you didn’t know, mark it high. If you thought it was well written, do the same. If it doesn’t meet your standards, mark it accordingly.

    You can also register and/or login to the site and join the conversation by leaving a comment.

    Rate it yourself by rolling over the stars and clicking when you reach your desired rating. We want you to tell us what you think of our articles. If the story moves you, compels you to act or tells you something you didn’t know, mark it high.

Sort by: Newest to Oldest | Oldest to Newest | Most Popular 0 Commentscomment icon

You can comment on most stories on brandonsun.com. You can also agree or disagree with other comments. All you need to do is register and/or login and you can join the conversation and give your feedback.

There are no comments at the moment. Be the first to post a comment below.

Post Your Commentcomment icon

Comment
  • You have characters left

The Brandon Sun does not necessarily endorse any of the views posted. Comments are moderated before publication. By submitting your comment, you agree to our Terms and Conditions. New to commenting? Check out our Frequently Asked Questions.

letters

Make text: Larger | Smaller

Brandon Sun Business Directory
The First World War at 100
Why Not Minot?
Welcome to Winnipeg

Social Media

Canadian Mortgage Rates