Factory activity is again on the rise in China
The official manufacturing purchasing managers’ index rose to 51.0 (50.3) points in August. This is the best reading in 16 month, states the China Federation of Logistics and Purchasing, it issues the data with the National Bureau of Statistics
The data reflects a slightly stronger than expected performance of China’s economic performance and leaves hope that the third quarter will also be stronger due to a rise in domestic demand. Officials more recently have shown a little more confidence in the economy’s performance and they are confident that the growth goal of 7.5 % for all of 2013 will become true and a consumer index that will be lower than 3.5 %.
The August sub-index for new orders to China’s industrial enterprises climbed to 1.8 percentage points from July’s level of 52.4 points. Import orders were strong, as were raw material input prices, pointing to improving domestic demand. The statistics bureau stated that big companies – many of them state enterprises – had a better performance than smaller firms and therefore more government support for this group will be expanded.