This article is from the source 'guardian' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.

You can find the current article at its original source at http://www.guardian.co.uk/business/2012/may/02/china-manufacturing-downturn-eases-hsbc-pmi

The article has changed 2 times. There is an RSS feed of changes available.

Version 0 Version 1
China's manufacturing downturn eases China's manufacturing downturn eases
(40 minutes later)
China's manufacturing sector appears to be easing out of its downturn after figures showed output declining at its slowest pace for six months.China's manufacturing sector appears to be easing out of its downturn after figures showed output declining at its slowest pace for six months.
A survey published by HSBC on Wednesday found that manufacturing contracted in April for the sixth straight month, though the rate of deterioration had slowed to 49.3, up from 48.3 in April. The index has remained below 50 the level indicating expansion, since October. A survey published by HSBC on Wednesday found that manufacturing contracted in April for the sixth straight month, though the rate of deterioration had slowed to 49.3, up from 48.3 in April. The index has remained below 50, the level indicating expansion, since October.
The bank's purchasing manager' index (PMI) reported that new export orders rose at a "fractional rate".The bank's purchasing manager' index (PMI) reported that new export orders rose at a "fractional rate".
Stock markets across the world have rallied in part due to the recovery in Chinese output. While fears remain that China's leadership has underestimated the extent of the country's property bubble and the extent of bad loans on the books of regional banks, most City analysts expect China to avoid a financial crash.Stock markets across the world have rallied in part due to the recovery in Chinese output. While fears remain that China's leadership has underestimated the extent of the country's property bubble and the extent of bad loans on the books of regional banks, most City analysts expect China to avoid a financial crash.
However, HSBC warned that the situation remained fragile as higher costs for fuel and raw materials, labour and transport contributed to worsening conditions. And the sector's continued contraction fed further falls in employment. Companies reduced jobs at the sharpest rate in 37 months, HSBC said.However, HSBC warned that the situation remained fragile as higher costs for fuel and raw materials, labour and transport contributed to worsening conditions. And the sector's continued contraction fed further falls in employment. Companies reduced jobs at the sharpest rate in 37 months, HSBC said.
A report by the state-backed China Federation of Logistics and Purchasing on Tuesday was more optimistic. The federation said its PMI rose 0.2 points to 53.3 in April, up from March's 53.1 and February's 51.0, in the fifth straight month of expansion.A report by the state-backed China Federation of Logistics and Purchasing on Tuesday was more optimistic. The federation said its PMI rose 0.2 points to 53.3 in April, up from March's 53.1 and February's 51.0, in the fifth straight month of expansion.
The federation's survey tends to reflect the status of big, state-owned manufacturers, while the HSBC survey is focused more on private and export-sector activity.The federation's survey tends to reflect the status of big, state-owned manufacturers, while the HSBC survey is focused more on private and export-sector activity.
The federation said its PMI for "small enterprises" fell below 50 last month, in line with the HSBC's reading.The federation said its PMI for "small enterprises" fell below 50 last month, in line with the HSBC's reading.
China's economic growth fell to 8.9% in the final quarter of last year and 8.1% in January-March, after Beijing hiked interest rates and tightened other controls to cool inflation.China's economic growth fell to 8.9% in the final quarter of last year and 8.1% in January-March, after Beijing hiked interest rates and tightened other controls to cool inflation.
China needs growth of 5% to 6% to keep pace with its rising population.China needs growth of 5% to 6% to keep pace with its rising population.
The country's central bank is expected to ease monetary conditions over the next few months to help boost growth, HSBC economist Qu Hongbin said, despite concerns that easier access to loans will not help manufacturing but help fuel the property boom. The country's central bank is expected to ease monetary conditions over the next few months to help boost growth, the HSBC economist Qu Hongbin said, despite concerns that easier access to loans will not help manufacturing but help fuel the property boom.
"We expect Chinese GDP growth to bottom out in the second quarter and recover modestly to over 8.5% in the second half," Qu said."We expect Chinese GDP growth to bottom out in the second quarter and recover modestly to over 8.5% in the second half," Qu said.