China’s manufacturing growth unexpectedly accelerated in Aug
The Dollar Business Bureau
China’s manufacturing industry growth is unexpectedly quickened in the month of August, indicating that the second largest economy of the world is still growing at a healthy rate in spite of cooling housing market and increasing financing cost.
China’s official factory analyses showed that the Asia’s largest economy continue to be on a solid footing, despite apprehensions that the country’s growth may start fading in the coming months.
The official Purchasing Managers’ Index (PMI), which is released on Thursday, increased to 51.7 in the month of August from 51.4 in July, beating expectations for a slight decline.
According to a separate industry survey, the activity in steel sector accelerated at the fastest rate since April 2016 on the back of government-led construction growth.
Chinese economy grew 6.9% in the first half this year - faster-than-expected, with reviving exports and strong retail sales add to the push from infrastructure development spree and all-time high lending by government-controlled banks in 2016.
After a good start this year, the Chinese government is looking confident to comfortably achieve or beat the growth target of the entire year of about 6.5%.
As per a separate official data, Chinese services sector growth slowed to 53.4 in this month compared to 54.5 last month, the slowest pace of expansion since May last year, however, it is still beyond the reading of 50, a benchmark separating expansion from contraction.
Chinese leadership is now counting on growth in consumption and services to rebalance the country’s growth model, which was heavily dependent on investments and exports.
Finance and property sectors witnessed a slower growth whereas the information technology (IT), aviation and broadcasting sectors expanded strongly, said China’s National Bureau of Statistics (NBS) in a statement.