Chinese manufacturing continues to accelerate

| December 1, 2010 | 0 Comments
Chinese manufacturing continues to accelerate

Manufacturing activity in China picked up further in November, two separate surveys showed today.

The China Federation of Logistics and Purchasing (CFLP) showed manufacturing activity rose to 55.2 last month, up from 54.7 in October and 53.8 in September.

Meanwhile, a separate survey from HSBC bank also confirmed manufacturing activity increased.

Activity rose to 55.3 last month (an 8-month high), up from 54.8 in October, HSBC said.

Both indices remain above the crucial 50 level, which indicates expansion, and have remained above this reading for 21 consecutive months.

However, the further growth in PMI may fuel concerns about the Chinese economy overheating and will add to inflation pressures.

Last month, the Chinese Government announced plans to curb double-digit food price inflation.

A number of measures have already been introduced by the Government to control prices, such as hiking interest rates – the first time since 2007 such a move was made.

The latest figures from the National Bureau of Statistics (NBS) revealed the consumer price index rose 4.4% in October, up from 3.6% in September. Food prices rose 10.1%.

Not only was the rate higher than analysts had expected, it represented the fastest pace since September 2008 – at the start of the global financial crisis.

Inflation fears are always a concern of Chinese officials due to the potential for price rises to trigger civil unrest.

Meanwhile, the economy continues to expand strongly after posting annual growth of 9.6% in the July to September period.

Tags: CFLP, , China Federation of Logistics and Purchasing, , , ,

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