China's manufacturing activity showed robust growth in January, driven by rising new orders and improving economic conditions.
The HSBC China Manufacturing Purchasing Managers Index jumped from 56.1 in December to settle at 57.4 in January. January was the fourth consecutive month to show a jump in the HSBC PMI.
It may be noted here that a reading of below 50 represents contraction, while above 50 stands for growth in the sector.
A separate index, prepared by the China Federation of Logistics & Purchasing and the National Bureau of Statistics, stood at 55.8 in January. Although the reading was down from 56.6 in December, yet it was the second-highest reading since May 2008.
The new orders component reported the strongest activity since April 2004, while export orders jumped at the highest pace since March 2005.
China, the fastest growing economy around the globe, ordered country’s major banks to limit lending amid concerns that too much lending could create asset bubbles and trigger inflation.
TopNews United States has contributed to the report.