| Click for the Finfacts Ireland Portal Homepage |

Finfacts Business News Centre

 Irish Economy
 EU Economy
 US Economy
 UK Economy
 Global Economy
 Asia Economy


How to use our RSS feed

Follow Finfacts on Twitter

Web Finfacts

See Search Box lower down this column for searches of Finfacts news pages. Where there may be the odd special character missing from an older page, it's a problem that developed when Interactive Tools upgraded to a new content management system.


Finfacts is Ireland's leading business information site and you are in its business news section.


Finfacts Homepage

Irish Share Prices

Euribor Daily Rates

Irish Economy

Global Income Per Capita

Global Cost of Living

Irish Tax - Income/Corporate

Global News

Bloomberg News

CNN Money

Cnet Tech News


Irish Independent

Irish Times

Irish Examiner

New York Times

Financial Times

Technology News




Content Management by interactivetools.com.

Asia Economy Last Updated: Mar 3, 2014 - 9:29 AM

China's manufacturing showed more weakness in February; Services PMI rose
By Finfacts Team
Mar 3, 2014 - 7:40 AM

Email this article
 Printer friendly page

China's manufacturing showed more weakness in February but because the week-long Lunar Year holidays fell in the first week of the month, it wasn't a typical one. Services rose according to a new official PMI (purchasing managers' index) measure.

The government's official manufacturing purchasing managers index, published on Saturday, fell to 50.2 in February from 50.5 in January - - 50 is the no change point. After adjusting for seasonal factors, such as the recent Chinese New Year festival, the HSBC PMI posted at 48.5 in February, up fractionally from the earlier flash reading of 48.3, and down from 49.5 in January. This signalled a moderate deterioration in the health of the Chinese manufacturing sector.

February data signalled the first contractions of both output and new orders at Chinese manufacturers since July 2013. The rates of decline were moderate in both cases, and were linked by panellists to weaker-than-expected client demand. New business from abroad also declined over the month, and at a modest pace that was little-changed from January.

Lower output requirements and fewer new orders led to a fourth successive monthly fall in staffing levels at Chinese goods producers in February. Furthermore, the rate of job shedding was the quickest since March 2009.

Despite reduced payroll numbers, outstanding business declined at Chinese manufacturing firms in February. Though only slight, it was the first fall in the level of work-in-hand for seven months. According to survey respondents, reduced volumes of new business enabled firms to lower their amount of unfinished work.

Fewer new orders also led companies to reduce their purchasing activity in February. This was the first time that input buying had decreased since July 2013. Inventories of pre-production goods also fell over the month as companies readjusted stock levels in line with reduced production requirements.

Meanwhile, suppliers’ delivery times improved for the third month in a row. However, the rate of improvement eased to a fractional pace.

On the price front, average input costs fell for the second month running in February. Moreover, the rate of input price deflation was the strongest since June 2013. According to anecdotal evidence, relatively muted demand for inputs enabled firms to negotiate discounts on production materials.

Finally, manufacturers cut their factory gate prices for the third month in a row during February, and at the quickest rate in eight months.

Hongbin Qu, chief economist, China & co-head of Asian Economic Research at HSBC said:  "The final reading of the HSBC China Manufacturing PMI confirmed the weakness of manufacturing growth. Signs become clear that the risks to GDP growth are tilting to the downside. This calls for policy fine-tuning measures to stabilise market expectations and steady the pace of growth in the coming quarters."

The Wall Street Journal reports that an official nonmanufacturing PMI, a gauge of service sector activity in China, rose to 55 in January from 53.4 in February. The strong figure suggests that China is making progress toward rebalancing of the economy away from its traditional reliance on exports and big capital projects—a move that experts say the country needs if it is to sustain reliable growth.

Check out our subscription service, Finfacts Premium, at a low annual charge of €25.

Related Articles
Related Articles

© Copyright 2011 by Finfacts.com

Top of Page

Asia Economy
Latest Headlines
IMF defers renminbi reserve decision; Devaluations losing firepower
Japan's trade deficit widens and GDP falls despite 33% yen devaluation
China's exports slide in July; Fx reserves dip $42.5bn in month
Chinese manufacturing PMI falls for 5th straight month in July; Japan at 5-month high
China's overseas investments to surge; Ireland got €99m of €46bn invested in EU in 2000-2014
China to overtake US economy in 2026; Income per capita will be 50% of US in 2050
Manufacturing activity in China and Japan contracted in June
China's manufacturing contracted for third straight month in May; Japan in slight rise
Asia accounts for 40% of global output, two-thirds of global growth
China's exports unexpectedly fell in April 2015 after March dip
China's growth in 2015 at slowest since early 2009
China's 2015 foreign trade continues to slide
Singapore remains world’s top location for business on 50th anniversary of independence
China's manufacturing activity fell to a 11-month low in March
China in surprise rate cut to boost sagging economy
Chinese Lunar New Year: Year of the Wood Goat begins this week
China’s manufacturing shrunk in January; Regional rise except Indonesia
Profits of Chinese industrial businesses plunged in 2014
China's growth in 2014 fell to a 24-year low
Services activity in China, Japan and India in moderate rises in December
China’s manufacturing industry remains competitive despite rising wages
China revises 2013 GDP up 3.4% to 56.5% of US economy size
China's manufacturing contracts in December; Japan's grows
China's imports slide in November; Emerging markets slow
Manufacturing PMI stalled in China in November; Fell in Korea, Indonesia , grew in India
China's manufacturing output contracted in November; Japan's accelerated
Ireland not among top 67 destinations for Chinese outbound FDI in 2014
Japan fell into recession in third quarter of 2014
Services slowed in China, contracted in Japan and stagnated in India in October
Manufacturing in South Korea/ Indonesia contracted in October; India in slight rise
Two Chinese manufacturing reports show trading near stagnation levels
Bank of Japan raises money printing target; Spending and wages plunge
China's manufacturing stagnates, Japan in moderate growth
China’s economy in third quarter grew at slowest pace in five years
Chinese exports jump in September; "Sadness will return soon"
World Bank cuts growth forecasts for developing East Asia including China
Japanese business confidence slightly improves; Manufacturing sector weak
Developing Asia remains fastest-growing region in world in 2014
Chinese manufacturing PMI rose slightly in September
Japan reports 26th straight monthly trade deficit; Public debt tops ¥1,000tn