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China's Manufacturing Activity Picks Up
Published on: 2014-06-03
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alt The official purchasing managers index (PMI) hit 50.8 in the month, up from 50.4 in April, the National Bureau of Statistics said. Any reading above 50 indicates growth.
 
The country's economy grew by 7.4% in the first three months of the year, down from 7.7% growth in the previous quarter.
 
Last month, another PMI survey by HSBC gave a preliminary reading for May of 49.7, also a five-month high. This survey focuses on smaller companies in the private sector, while the official PMI survey is weighted more towards bigger, state-owned enterprises.
 
"The improvement of both PMIs suggests that economic activities have stabilized somewhat due to the recent pro-growth policies," said ANZ bank.
 
These policies have included extending tax breaks for small and medium-sized companies, and ramping up spending on China's railway infrastructure.
 
Last week, the government also signaled it would cut reserve requirements for banks in a bid to stimulate lending to certain sectors.
 
At the same time as announcing the measures, the State Council described the economy as "stable", but added that "downward pressure is still relatively large".
 
Earlier this year, Premier Li Keqiang set a target of around 7.5% growth this year.
 
China's GDP growth has been falling since 2010, when it stood at 10.4%.
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