China manufacturing activity in January close to 2-year high

In this Dec. 13, 2016 photo, workers eat their lunch outside a construction site wall depicting the skyline of the Chinese capital at the Central Business District in Beijing. Chinese manufacturing expanded in January at close to its fastest pace in two years as heavy government spending and a bank lending boom helped to keep economic activity steady headed into 2017, a survey showed Wednesday, Feb. 1, 2017. (AP Photo/Andy Wong)

A government survey shows China's manufacturing activity expanded in January at close to its fastest pace in two years

BEIJING — Chinese manufacturing expanded in January at close to its fastest pace in two years as heavy government spending and a bank lending boom helped to keep economic activity steady headed into 2017, a survey showed Wednesday.

The National Bureau of Statistics' purchasing managers index showed manufacturing growth at 51.4 on a 100-point scale on which numbers above 50 indicate an expansion. That was down only slightly from November's two-year high of 51.7.

Growth in the world's second-largest economy declined to 6.7 percent last year, down from 2015's 6.9 percent and the weakest rate since 1990. Heavy government spending and a boom in real estate sales and bank lending helped prevent it from cooling further.

Forecasters expect growth to weaken further this year as regulators try to cool what analysts warns is a dangerously fast run-up in debt and rising housing costs. The International Monetary Fund is predicting this year's growth will slow to 6.5 percent.

The latest data show a "relatively strong start to the year," Julian Evans-Pritchard of Capital Economics said in a report.

"The more important question is whether or not the current strength will be sustained," said Evans-Pritchard. "We doubt that it will be given how reliant the recent recovery has been on support from monetary and fiscal policy that is now being withdrawn."

Manufacturers have been battered by a slump in global demand for Chinese goods and steadily declining domestic economic activity.

Exports shrank by 7.7 percent last year compared with 2015 while growth in Chinese retail sales decelerated to 9.6 percent from the previous year's 10.6 percent.

Chinese leaders have used repeated infusions of credit to prevent a sharper slowdown, which has temporarily set back efforts to reduce reliance on trade and debt-supported investment.

A decline in construction spending as Beijing tightens controls in lending should weigh on demand for steel and other manufactured goods.

The health of Chinese manufacturing is important to other Asian economies that supply raw materials and industrial components and to exporters of oil, iron ore and other commodities such as Australia and Brazil.

Some individual indicators for new orders and other factors declined slightly in January, but "industrial operations remain in the boom range," said economist Zhang Liqun in a statement released by the NBS and an industry group, the China Association for Logistics and Purchasing.

Related News

China exports shrink as Trump trade tensions loom

Jan 13, 2017

China's exports fell back into contraction again last month, signaling renewed weakness for the...

China aircraft carrier capabilities tested on...

Jan 14, 2017

China's sole aircraft carrier has returned home following a three-week cruise during which its...

A look at how Trump might shake things up in Asia

Jan 16, 2017

Donald Trump has offered views on U.S. relations with Asia that could indicate radical shifts in...

Malaysia Air on rebound as missing flight search...

Jan 17, 2017

Nearly three years after twin disasters took it to the brink of financial collapse, Malaysia...

Business group: China preparing to retaliate on...

Jan 18, 2017

An American business group says China is preparing to retaliate if U.S. President-elect Donald...

China's growth edges up but 2016 weakest year...

Jan 20, 2017

China reports its economy picked up pace in the last quarter, though its full-year performance was...

You may also like these

China's growth edges up but 2016 weakest year...

Jan 20, 2017

China reports its economy picked up pace in the last quarter, though its full-year performance was...

What Trump's trade and geopolitical moves mean...

Jan 24, 2017

With his rejection of an Asian trade pact, U.S. President Donald Trump has started tackling policy...

EU asks China to open markets following free...

Jan 25, 2017

The European Union ambassador to China has welcomed its endorsement of free trade in the face of...

China manufacturing activity in January close to...

Feb 1, 2017

A government survey shows China's manufacturing activity expanded in January at close to its...

World stocks extend gains sparked by Trump tax...

Feb 10, 2017

World stock markets are gaining following U.S. President Donald Trump's promise that he plans to...

About Us

Daily World Web took the initiative to utilize the development in cloud and AI technology to create a free, instantaneous and borderless flow of news, the way it should be.

Contact us: sales@dwwcom.com

Subscribe Now!