Wednesday July 1, 05:20 AM
China says manufacturing continues to expand
BEIJING (AFP) - China's manufacturing activity expanded in June for the fourth consecutive month, official figures have shown, the latest tentative sign of economic recovery.
The official Purchasing Managers' Index, or PMI, for the manufacturing sector hit 53.2 in June, up from 53.1 in May, the China Federation of Logistics and Purchasing said in a statement on its website.
A reading above 50 means the sector is expanding, while a reading below 50 indicates an overall decline.
"China?s stimulus programme is having a demonstrable effect on domestic spending which has resulted in increased manufacturing activity," Jing Ulrich, a Hong Kong-based economist with JP Morgan, said in a research note.
Beijing announced a four-trillion-yuan (585-billion-dollar) stimulus package last year in a bid to prop up growth in the world's third largest economy by boosting spending on infrastructure and other government-backed projects.
The PMI sank to a record low of 38.8 in November due to the global financial crisis, but improved continuously in the five months until April, moving above 50 in March.
Manufacturing accounts for more than 40 percent of the economy in China, which has been hit hard by evaporating demand for its products in key export markets such as the United States and Europe.
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