Each day TFO Canada publishes a sample of trade news on the Canadian import market along with any new, updated or changed regulations and legislations regarding international trade; countries in which TFO Canada offers services and on the export sectors which it promotes.
China and India's manufacturing sector perfomanceWednesday, October 02, 2013 > 14:11:39
China Manufacturing Expands in September
(IndustryWeek – Agence France-Presse)
China's manufacturing activity expanded for a second straight month in September, HSBC reported today, suggesting that the rebound in the world's second-biggest economy is building momentum.
The bank's closely watched purchasing managers' index for the month rose to 50.2 from 50.1 in August and well up from an 11-month low of 47.7 seen in July. A reading higher than 50 signals growth. Anything below 50 indicates contraction.
"Though only slight, this was a positive development," the British banking giant said in a statement.
The news is the latest sign that the Asian economic giant is picking up speed after suffering a slowdown at the start of the year. The economy registered growth of 7.7% in 2012 – the worst performance in 13 years – 7.7% in the first three months of this year and 7.5% in April-June.
But recent data, including strong exports and industrial output, have pointed to renewed strength. China has refrained from introducing major stimulus measures, but in late July it announced a number of steps to bolster growth, including reducing taxes on small companies and encouraging railway development.
Authorities would likely maintain small-scale efforts to support growth, HSBC chief economist Qu Hongbin said in a statement. "Growth is bottoming out on Beijing's mini-stimulus," Qu said. "We expect continuous policy efforts to sustain the recovery."
India's Manufacturing Sector Contracts for Second Month
The India manufacturing sector contracted for the second successive month in September, but at a slower rate than in the previous month, data from a survey by Markit Economics and HSBC Bank showed Tuesday.
The seasonally adjusted purchasing managers' index (PMI) for the manufacturing sector moved up to 49.6 in September from 48.5 in August. Readings below 50 indicate contraction of the sector, while those above 50 suggest expansion.
New orders placed with Indian goods producers decreased during the month, but at a slower rate than in August. The contraction of export business accelerated to the quickest in over two years.
Production at Indian factories decreased further in September, though at a slower pace than in the previous month, reflecting the lower levels of incoming new work and economic instability. Responding to the decrease in workload, companies reduced their workforces for the first time since February 2012.
Input prices increased sharply to a 15-month high in September, with all the three sub-sectors recording stronger rates of cost inflation. Consequently, companies raised their output prices further.