China’s manufacturing expanded last month at its fastest rate in a year as domestic demand offset sluggish exports, a survey showed yesterday, highlighting the importance of Beijing’s huge stimulus in driving Chinese growth.
Hong Kong brokerage CLSA Asia-Pacific Markets said its monthly purchasing managers index (PMI) rose to a 12-month high of 52.8 on a 100-point scale where numbers above 100 indicate expansion.
That was up from June’s 51.8.
“Manufacturing activity continues to accelerate and, importantly, orders growth is being driven by the domestic economy,” CLSA economist Eric Fishwick said in a statement. “Export prices lag, another sign of China looking inwards for growth.”
The survey echoed a report on Saturday by the state-sanctioned China Federation of Logistics & Purchasing that showed manufacturing expanding for a fifth month following the plunge in global demand for Chinese goods.
The PMI is viewed by economists as a better measure of China’s economic outlook than data such as GDP because it includes elements such as orders for future sales.
CLSA’s index is based on a monthly survey of some 400 companies, while the Chinese federation surveys approximately 700 companies.
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