By
\n Rudi Filapek-Vandyck<\/p>\n
A
\n picture seems to be emerging that China's manufacturing sector might
\n have hit rock bottom in November last year, and that a slow and gradual
\n recovery is taking place on the back of increased government stimuli.<\/p>\n
After CLSA's monthly survey into Chinese manufacturers
\n showed a slight improvement for January on Monday, today's release of
\n the official manufacturing activity survey suggests a slow recovery might indeed
\n be taking place.<\/p>\n
It
\n has to be noted though, the sector is still contracting and has been contracting
\n for four months in a row, if we take guidance from the monthly Purchasing
\n Managers' Index for China's manufacturing sector as compiled
\n and published by the China Federation of Logistics and Purchasing and the
\n Chinese government's& National Bureau of Statistics.<\/p>\n
According to the official January PMI release, the
\n Purchasing Managers' Index for China’s manufacturing sector rose to 45.3% from
\n 41.2% in December and a record low of 38.8% in November. A reading
\n below 50% indicates contraction.<\/p>\n
\n Also, a measure of export orders rose to
\n 33.7 from 30.7 in December. The output index jumped to 45.5 from 39.4. The
\n new-order index climbed to 45 from 37.3. The measure of unemployment, however,
\n dropped to 43.0 from 43.3. In November, those indexes all fell to the lowest
\n levels since the survey began in 2005.<\/p>\n
Further fueling hope the Chinese economy may have left
\n the worst behind, is a report by Bloomberg that a survey of 500 Chinese firms
\n in 60 cities in December and early January by Nomura Holdings has revealed
\n 60% had cut inventories to one or two months’ use or sales, down from
\n three to four months.<\/p>\n
\n The Nomura survey indicates Chinese companies may start
\n rebuilding their inventories later this quarter. This could boost demand for
\n beaten down base materials.<\/p>\n
The
\n PMI is based on a survey of more than 700 companies in 20 industries,
\n including energy, metallurgy, textiles, automobiles and electronics.The
\n survey tracks changes in output, new orders, export orders, employment,
\n inventories, input costs and output prices.<\/p>\n","protected":false},"excerpt":{"rendered":"
New surveys fuel hope China’s economic downturn might have bottomed.<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[58],"tags":[27],"acf":[],"_links":{"self":[{"href":"https:\/\/staging.fnarena.com\/index.php\/wp-json\/wp\/v2\/posts\/55126"}],"collection":[{"href":"https:\/\/staging.fnarena.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/staging.fnarena.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/staging.fnarena.com\/index.php\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/staging.fnarena.com\/index.php\/wp-json\/wp\/v2\/comments?post=55126"}],"version-history":[{"count":0,"href":"https:\/\/staging.fnarena.com\/index.php\/wp-json\/wp\/v2\/posts\/55126\/revisions"}],"wp:attachment":[{"href":"https:\/\/staging.fnarena.com\/index.php\/wp-json\/wp\/v2\/media?parent=55126"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/staging.fnarena.com\/index.php\/wp-json\/wp\/v2\/categories?post=55126"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/staging.fnarena.com\/index.php\/wp-json\/wp\/v2\/tags?post=55126"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}