Steel_Steel products_The price of steel_Langesteel

PMI points to overall economic resilience2019-2-1 10:06:36(Beijing Time) Lange Steel

China's official manufacturing Purchasing Managers' Index (PMI) edged up to 49.5 in January from 49.4 in December, according to data released by the National Bureau of Statistics (NBS) on Thursday.

Despite the slight rise, it was the second consecutive month in which the PMI was below 50. Analysts said that the rise in the PMI reading indicates that the overall economy remains resilient, but there is still the risk of further weakening and the authorities need to boost domestic demand to bolster growth.

A PMI reading above 50 indicates expansion while that below 50 indicates contraction.

"The small uptick indicates that manufacturing activities are still expanding and the economy remains resilient," said Li He, an analyst at the research institute of Bank of China.

The index for new export orders edged up to 46.9 in January from 46.6 in the previous month, the NBS data showed. Export growth may be stronger than expected in January, Li said.

"The PMI rebounded after four months of declines, but it was still in the contraction territory, which signals that there's still downward growth pressure given the weakening domestic and external demand," said a research note from Bank of Communications.

In the first quarter of this year, China's economic growth may continue to weaken, analysts Lian Ping and Liu Xuezhi said in the note. "The country's counter-cyclical macro policy adjustments have stopped PMI from declining, but manufacturing activities are yet to rise into the expansionary territory."

The authorities need to boost demand in the domestic market to stimulate growth since it is hard to expand external demand, said a research note of Morgan Stanley Huaxin Securities.

Li of Bank of China said that the nation's manufacturing activities may pick up in March as supportive policies gradually take effect.

Since the Spring Festival falls in February this year, activity may weaken in the month given the seven-day holiday, when many businesses scale back their operations or close for long periods around the holiday, which begins on Feb 4 this year, leading to lower manufacturing PMI reading.

China has taken a series of measures to facilitate money transmission in the real economy and cut taxes and fees to bail out cash-thirsty small businesses. As those measures start to work, the manufacturing PMI may pick up, analysts said.

  • Lange Singapore Business Trip ..

    To build The Belt and Road \"iron and steel industry business cooperation platform, Lange steel network organized a series of international busin.....

  • TUBE, WIRE, METAL AND WELDING ..

    TEKNO is a biannual trade show covering the industries of TUBE, WIRE AND CABLE, WELDING AND CUTTING and METAL and is the best professional trade show .....

  • Lange Belt and Road Initiative..

    Lange Belt and Road Initiative Business Trip to Russia will hold on 6-10th June, 2017. At present, countries in Asia and Europe are at a critical s.....

  • Ninth International Conference..

    5-7 December 2018 -Hong Kong, China Jointlyorganised by The Hong Kong Institute ofSteel Construction & Department of Civil andEnvironmenta..

    2018-08-15
  • The 4th International Conferen..

    ConferenceIntroduction The Fourth International Conference onAdvanced High Strength Steel and Press Hardening will be held on August20-22th, 2018 in H..

    2018-08-15
  • AISTech 2018 — Steel's P..

    AISTech2018— Steel's Premier Technology Event will be held at the PennsylvaniaConventionCenter, Philadelphia, Pa., USA. Thisevent will fe..

    2018-01-11