Survey: Chinese manufacturing shows slight gains
The Associated Press, Shanghai, China | Wed, 09/01/2010 9:19 AM
Expansion of Chinese manufacturing activity recovered slightly in August, the first gain in four months, as production, new orders and purchasing prices all edged higher.
The state-affiliated China Federation of Logistics and Purchasing said its purchasing managers index, or PMI, rose to 51.7 in August from 51.2 July and 52.1 in June. Numbers above 50 show manufacturing activity expanding.
The index, an indicator of future manufacturing trends, has remained above 50 for 18 straight months after slowing in late 2008 and early 2009. It was 53.9 in May and 55.7 in April.
Areas such as production, new orders and purchasing prices all gained, according to a summary of the survey posted on the federation's website.
"The rise in the PMI for August shows that China's economy will not suffer a serious correction," the report said, citing federation analyst Zhang Liqun.
Zhang noted that strong export demand, domestic consumption and investment were all supporting growth despite concern over a slowing in economic growth in the second quarter. But he said the surge in purchasing prices was a factor to watch as it could raise companies' production costs.
China's economic growth slowed to 10.3 percent over a year earlier in the second quarter, down from its blistering 11.9 percent first quarter pace.
Many worry that the slowdown could weaken the global recovery if it cuts Chinese demand for imported iron ore, industrial machinery and other foreign goods.
