ID :
190596
Thu, 06/23/2011 - 09:35
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https://oananews.org//node/190596
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China's manufacturing sentiment hits 11-month low in June
By Kim Young-gyo
HONG KONG, June 23 (Yonhap) -- China's manufacturing activity cooled down to an 11-month low in June as the country's tightening measures began to take effect, a British bank said Thursday.
In a monthly report, HSBC Ltd. said its flash purchasing managers index (PMI) for China's manufacturing sector came to 50.1 for this month, down from 51.6 in May and the lowest since July 2010.
The PMI measures the economic health of a country's manufacturing sector. A reading of 50 or above represents an expansion of the sector compared to the previous month while a reading lower than 50 represents a contraction.
HSBC said demand is cooling in China due to the effect of tightening monetary polices and the slackness in external markets.
"The flash manufacturing PMI is disappointing in terms of growth and could invite more concerns about a hard landing," said Qu Hongbin, chief China economist at HSBC.
"But we believe this slowdown is temporarily amplified by the overlapping effects of supply disruption in the region, domestic inventory destocking and the filtering-through of tightening measures."
The indicator of Chinese manufacturing activity was significantly dragged down by the new exports orders subindex, which fell to 46.9 in June from 49.7 in May, HSBC said.
New exports orders recorded the lowest level since the financial crisis in late 2008, underscoring the supply disruption after Japan's earthquake and the recent slowdown in developed markets, the British bank said.
While signs are showing inflationary pressures started to ease meaningfully in manufacturing output prices, Beijing still needs to keep the current tightening measures, it stressed.
"It is too early to claim a victory in the inflation fight," Qu said. "The CPI (consumer price index) is likely to hit a new cycle high in June and the food inflation is likely to remain high since the recent floods in southern China could cause a temporary disruption to the food supply."
In May, China's consumer prices rose 5.5 percent from a year earlier to a 34-month high. It was an increase of more than 5 percent for the third straight month, higher than the Chinese government's annual target of 4 percent.
ygkim@yna.co.kr
HONG KONG, June 23 (Yonhap) -- China's manufacturing activity cooled down to an 11-month low in June as the country's tightening measures began to take effect, a British bank said Thursday.
In a monthly report, HSBC Ltd. said its flash purchasing managers index (PMI) for China's manufacturing sector came to 50.1 for this month, down from 51.6 in May and the lowest since July 2010.
The PMI measures the economic health of a country's manufacturing sector. A reading of 50 or above represents an expansion of the sector compared to the previous month while a reading lower than 50 represents a contraction.
HSBC said demand is cooling in China due to the effect of tightening monetary polices and the slackness in external markets.
"The flash manufacturing PMI is disappointing in terms of growth and could invite more concerns about a hard landing," said Qu Hongbin, chief China economist at HSBC.
"But we believe this slowdown is temporarily amplified by the overlapping effects of supply disruption in the region, domestic inventory destocking and the filtering-through of tightening measures."
The indicator of Chinese manufacturing activity was significantly dragged down by the new exports orders subindex, which fell to 46.9 in June from 49.7 in May, HSBC said.
New exports orders recorded the lowest level since the financial crisis in late 2008, underscoring the supply disruption after Japan's earthquake and the recent slowdown in developed markets, the British bank said.
While signs are showing inflationary pressures started to ease meaningfully in manufacturing output prices, Beijing still needs to keep the current tightening measures, it stressed.
"It is too early to claim a victory in the inflation fight," Qu said. "The CPI (consumer price index) is likely to hit a new cycle high in June and the food inflation is likely to remain high since the recent floods in southern China could cause a temporary disruption to the food supply."
In May, China's consumer prices rose 5.5 percent from a year earlier to a 34-month high. It was an increase of more than 5 percent for the third straight month, higher than the Chinese government's annual target of 4 percent.
ygkim@yna.co.kr
