China's manufacturing activity at 18-month high

[Raphael]

http://www.bbc.co.uk/news/business-24755438

China's manufacturing activity grew at its fastest pace in 18 months in October, adding to signs of a recovery in the world's second-largest economy.

The official Purchasing Managers' Index (PMI), a gauge of the sector's health, rose to 51.4 from 51.1 in September.

Manufacturing is a key driver of China's growth and a PMI reading above 50 indicates expansion in the sector.

The data comes just weeks after China reported its economic growth picked up speed in the July-to-September period.

Its economy grew 7.8% in the quarter from a year earlier, up from the 7.5% expansion recorded in the previous three months.

The pick up in the pace of growth was the first in three quarters.

Official figures released last month also showed growth in industrial output, retail sales and fixed asset investment.

After years of blistering growth, China has seen its pace of expansion slow recently.

China has set a growth target of 7.5% for the year.

Analysts said the latest numbers indicated that it was likely that Beijing would meet this.

"This is in line with our relatively benign growth outlook," said Louis Kuijs, an economist at Royal Bank of Scotland.

"With global demand momentum likely to pick up gradually and domestic demand growth remaining solid, we expect GDP growth to comfortably exceed the government's bottom line in the coming quarters."

Mr Kuijs added that he expects China's economy to expand 7.7% in the current year.

A separate PMI reading released by HSBC, which looks at relatively smaller firms, also indicated an expansion in the sector.

The HSBC PMI reading rose to 50.9 in October, from 50.2 in September. It is the strongest improvement in the HSBC index in seven months.

First they said it was time for China's "hard-landing". Then they conceded GDP growth will continue to exceed 7%, but that it was all going into property bubbles and 'ghost cities', not real economic activity. Now it seems once again that manufacturing is the engine at the heart of China's growth.

How will the China-haters spin this now? It will be very convoluted, but I have faith in the creativity of China haters to fabricate a new narrative .

 

[xunzi]

This is why whenever I read of an upcoming China collapse, I just laugh. LMAO

 

[Götterdämmerung]

http://www.bbc.co.uk/news/business-24755438


How will the China-haters spin this now? It will be very convoluted, but I have faith in the creativity of China haters to fabricate a new narrative .

The easiest spin would be to call everything "fake", they can also claim that all the goods are being stored in warehouses without customers and waiting the commodity bubble to burst or China is even more dependent on export since Chinese are too poor to consume anything or China high mfg. activity is poison to the world economy because raw material is getting too expensive and other developing countries are suffering.

All that didn't even need more than two minutes to write down. I should get a Gordon Chang award.

 

[ephone]

Aren't they scared? They claim China has this bubble to burst for years. Man, if it is really the case, the bubble would have grown into such a gigantic size.

 

[bolo]

The easiest spin would be to call everything "fake", they can also claim that all the goods are being stored in warehouses without customers and waiting the commodity bubble to burst or China is even more dependent on export since Chinese are too poor to consume anything or China high mfg. activity is poison to the world economy because raw material is getting too expensive and other developing countries are suffering.

All that didn't even need more than two minutes to write down. I should get a Gordon Chang award.

You should write a book as about the coming collapse of China. the more I hear Gordon Chang, the more I think he is just making a good living but not really believing his view. good for him.

 

[armchairPrivate]

Gordon Chang hasn't been in the news for a while now. I guess people started to question his crystal ball which turned out to be made of plastic.

I love it when people to cheer when "bad" economic news coming out of China - China is collapsing.
And they doubt the "good" economic news - the figure can be trusted.

I guess when you are doing well, some people just can't take it and get jealous, which is understandable.

 

[Raphael]

The easiest spin would be to call everything "fake", they can also claim that all the goods are being stored in warehouses without customers and waiting the commodity bubble to burst or China is even more dependent on export since Chinese are too poor to consume anything or China high mfg. activity is poison to the world economy because raw material is getting too expensive and other developing countries are suffering.

All that didn't even need more than two minutes to write down. I should get a Gordon Chang award.

The funny thing is that the US even criticized Germany's manufacturing competitiveness:

http://www.bbc.co.uk/news/business-24755434

Everyone wants to be the manufacturer, and everyone know that's what real economic production is. But some countries, because of their fiscal/monetary profligacy, constant current account and government budget deficits, will never be able to encourage manufacturing, and therefore they can only whine about those who can.

 

[bolo]

The funny thing is that the US even criticized Germany's manufacturing competitiveness:

http://www.bbc.co.uk/news/business-24755434

Everyone wants to be the manufacturer, and everyone know that's what real economic production is. But some countries, because of their fiscal/monetary profligacy, constant current account and government budget deficits, will never be able to encourage manufacturing, and therefore they can only whine about those who can.

that is correct. service industries are not the real money maker.As long as China is mainly in production, the economy will remain strong. 

Gordon Chang hasn't been in the news for a while now. I guess people started to question his crystal ball which turned out to be made of plastic.

I love it when people to cheer when "bad" economic news coming out of China - China is collapsing.
And they doubt the "good" economic news - the figure can be trusted.

I guess when you are doing well, some people just can't take it and get jealous, which is understandable.

If outsiders are pissed off at China that is a good thing. It means the govt is implementing policies that benefit its own people not outsiders.

 

[Destro]

Great news. The new reforms that have taken place are bringing benefits. More reforms needed and the growth will be faster and more efficient.