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Chinese factories get end of year production boost | |
(40 minutes later) | |
China has seen an improvement in a key measure of manufacturing, boosting optimism that steady economic growth will continue into 2012. | China has seen an improvement in a key measure of manufacturing, boosting optimism that steady economic growth will continue into 2012. |
The purchasing managers' index rose to 50.3 in December from 49 in November, the statistical office said. A reading of more than 50 shows expansion. | The purchasing managers' index rose to 50.3 in December from 49 in November, the statistical office said. A reading of more than 50 shows expansion. |
Increased economic activity for the Christmas holiday period and Chinese New Year have helped demand. | Increased economic activity for the Christmas holiday period and Chinese New Year have helped demand. |
China's government pledged in December to guarantee steady growth in 2012. | China's government pledged in December to guarantee steady growth in 2012. |
The purchasing managers index (PMI) report is compiled by the China Federation of Logistics and Purchasing (CFLP) on behalf of the statistical bureau. | |
According to the CFLP, the December figures point to the fact that there will be no significant slowdown in the Chinese economy this year. | |
Policy shift? | |
However, analysts were more cautious in their reactions to the December PMI report. | |
"Overall, the economy is weakening and it's still too early to tell any clear signs of recovery at this stage," said Hua Zhongwei of Huachuang Securities. | |
A separate PMI report from global bank HSBC also showed a small bounce in production. | |
HSBC's China Manufacturing Purchasing Managers Index rose to 48.7 in December from 47.7 in November. | |
But while that is an improvement it still implies a contraction in output, with a reading of less than 50. | |
Analysts said that it showed China was continuing to be impacted by external events such as the European debt crisis and weak growth in the US. | |
They added that should key indicators weaken further in coming months then it may put more pressure on the government to come up with a more pro-growth policy response, such as an interest rate cut. |
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