China manufacturing continues to grow in February

Surveys by the Chinese Government and HSBC have today revealed China’s manufacturing activity continued to grow in February, albeit at a slower pace.

The HSBC China Manufacturing purchasing managers’ index (PMI) dipped to 55.8 in February from 57.4 the previous month.

However, a reading above the crucial 50 mark means the sector is expanding.

In the meantime, manufacturing output grew for the 11th consecutive month on the back of sharp gains in new business led by firmer client demand, according to the HSBC survey.

HSBC’s chief China economist Hongbin Qu, said: “Despite the moderation in the headline China Manufacturing PMI, growth momentum for China’s manufacturing sector remains strong, pointing to a further acceleration in industrial activities in the coming quarters.”

However, a separate closely-watched PMI published by the China Federation of Logistics and Purchasing (CFLP) today revealed manufacturing activity fell from 55.8 in January to 52.0 in February.

In related news, China‘s economy, which is currently the world’s third largest, saw double digit growth in the fourth quarter of 2009 and the economy is now on target to surpass Japan and become the world’s no.2 economy.

The economy expanded by 10.7% in the final quarter of 2009 compared with the same period a year earlier.

Meanwhile, the economy grew by 8.7% in the 2009 year – which exceeded the Government’s initial expectations.

Many analysts have described China’s recovery as “impressive” and it was recently announced that China had overtaken Germany as the world’s biggest exporter.

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