China economic growth accelerates as manufacturing expands
01 Aug 2009
China's manufacturing has expanded for a fifth month on the back of record lending and a 4 trillion yuan ($586 billion) stimulus plan. The official Purchasing Managers' Index (PMI) was at a seasonally adjusted 53.3 in July, up from 53.2 in June, the Federation of Logistics and Purchasing said today in Beijing.
Numbers above 50 indicate an expansion.
The manufacturing index has climbed from a record low of 38.8 in November.
The country's stimulus spending and subsidies for consumer purchases appear to have countered a collapse in exports and helped drive recovery in the world's fastest- growing major economy.
Economists warn, however, that though the recovery appears to be very strong it may not be stable being stimulus driven.
An export-order index was at 52.1 in July, up from 51.4 in June, the PMI showed, as was an output index - at 57.3 from 57.1.
