China: Growth in manufacturing mainly from state enterprises

Source:
ITTO/Fordaq
Views:
1624
  • text size

Growth in manufacturing mainly from state enterprises The most recent data for China’s manufacturing purchasing managers index (PMI) is that for September.

The press release from the National Bureau of Statistics shows that activity in the manufacturing sector expanded at the same rate as in August.

The official Purchasing Managers' Index (PMI) stood at 50.4 in September, the same as in August. A reading above 50.0 signals expansion.

The PMI for large-sized enterprises (mostly state enterprises) was 52.6 and continues to be higher than the negative threshold; that of medium-sized enterprises was 48.2, a drop from August levels while the PMI for smallsized enterprises also fell.

Among the five sub-indices comprising the PMI, the production index and new orders indices were higher than the negative threshold.

The employed person index, main raw materials inventory index, and supplier delivery time index were also lower than the threshold.

The most encouraging news is perhaps that export orders increased in September and output rose slightly.

Analysts suggest that the movement of the PMI over the past few months signals stable growth but a growing dependence on government spending. On the downside the housing market is overheated and debt levels are rising fast.

Post comment