Chinese manufacturing increases in January as per official PMI

Economy - Mohit Shah - Feb 01,2017

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chinese manufacturing increases in january as per official pmi

According to China's official manufacturing Purchasing Managers' Index (PMI), the industrial sector sustained to expand in January at an astonishing rate.

It is believed that the mainland economy will soon stabilize if such growth in the industrial sector is carefully retained.

The Chinese manufacturing PMI came in at 51.3 in January, down a bit from 51.4 in December, but counting still better as compared to a poll forecast of 51.2 by Reuters.

Figures above 50 signals expansion, whereas reading below indicates contraction.

It was also recorded that official non-manufacturing PMI, which takes an evaluation on the services sector, jumped to 54.6 in January from 54.5 in December.

On Wednesday, Capital Economics' China economist Julian Evans-Pritchard stated in a note that the manufacturing figures were still quite strong, despite a slender decline. He further added, the outcome is that China's fresh recovery appears to remain largely intact for now.

The figures likely indicated that China's economic growth was slowly steadying. However, concerns have ranged over the nation’s economy's health, as private-sector debt has risen even as the amount of growth from added debt has declined.

Andy Xie, an independent economist and former chief Asia-Pacific economist at Morgan Stanley said, "Since the middle of last year, the economy has experienced a very big recovery". This statement by Xie came after analyzing the sharply surging electricity consumption.

China's gross domestic product (GDP) matured by 6.8 percent on-year in the fourth quarter, firmly beating expectations and gesturing growth was stabilizing. Moreover, China's economy grew 6.7 percent for the full year.

As per China's statistics bureau, the consumption accounted for 64.6 percent of GDP in 2016, whereas, per capita consumption augmented by 8.9 percent on year to 17,111 yuan ($2,490).  These are positive statistics which are required for pushing the nation back to its progressive track.