September PMI hits record high, strengthening confidence in GDP growth for 2017: analyst

By Chen Qingqing Published: 2017/9/30 11:56:35

Both manufacturing and non-manufacturing PMIs of China in September reached the highest level in recent years, driven by recovery in exports and construction.

China's manufacturing PMI, a gauge of industrial activity, reached 52.4, the highest since 2012, data from the National Statistics Bureau (NBS)showed Saturday morning. 

The expansion of the manufacturing sector has accelerated recently, Zhao Qinghe, senior statistician of the NBS, said in a statement posted on the NBS website. Zhao attributed the acceleration in the growth of exports, with the new export order index hitting 51.3, up 0.9 pointon a month-on-month basis. 
In the PMI index, areading above 50 indicates expansion in business activity.

The survey showed that over 40 percent of enterprises saw a rise in the prices of raw materials in September, with those in the medium and low-end sectors expressing concerns about further increases in the cost, especially in sectors such as papermaking, wood processing and chemical manufacturing. 

The NBS data also showed that the non-manufacturing PMI in September reached 55.4, up 2 points on a month-on-month basis, the highest since June 2014. 

The expansion was propelled by a rapid growth in services sector as well as recovery in construction. 

The upturn in China’s official manufacturing PMI in September to the highest level since April 2012 highlights the continued robust momentum of Chinese industrial growth during 2017 to date, Rajiv Biswas, Asia-Pacific chief economist of IHS Markit, said in a research note sent to the Global Times on Saturday.

“This reinforces latest industrial profit data for August which showed buoyant profit growth of 24 percent year-on-year, helped by strong growth in the construction sector, and buoyant profit growth in key sectors such as steel and electronics,”Biswas said, noting that the outlook for the Chinese industrial growth remains positive in the near term, with the Chinese GDP growth rate expected to be strong.

IHS Markit forecasts China’s GDP growth to be 6.8 percent for 2017.

Posted in: ECONOMY

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