1. Skip to content
  2. Skip to main menu
  3. Skip to more DW sites
Live TV
Latest audioLatest videos
In focus
Russia's war in UkraineIsrael-Hamas warIndia elections

China manufacturing edges up

September 23, 2014

Manufacturing and export orders in China have unexpectedly risen, confounding analysts' predictions. But the modest growth was not enough to dispel Beijing's fears of a weakening labor market.

https://p.dw.com/p/1DHJU
Chinese workers in a factory
Image: Reuters

China's massive factory sector picked up unexpectedly in September, an international banking group found Tuesday.

But while the HSBC/Markit Flash China Purchasing Managers' Index (PMI) rose to 50.5 in September from August's final reading of 50.2, it was only enough to soften and not dispel unease by the country's Communist leaders over weak economic growth in the wider economy.

Anything above the 50 mark indicates expansion.

"After the dismal industrial production print for August, financial markets were increasingly of the view that China is slowing at a more rapid pace than desired, so today's print provides a welcome offset," said Annette Beacher, the head of Asia-Pacific research at TD Securities.

Factory employment sank to a 5-1/2-year low, reinforcing analysts' beliefs that Beijing could undertake measures to boost growth that stop short of cutting interest rates. More likely is that the government will lower select lending rates such as mortgages.

An economist at Bank of America-Merrill Lynch, Ting Lu, said the central bank could also loan more to big banks on the condition that the money is then passed on to businesses.

cjc/hg (Reuters, dpa)