Published on : Jun 25, 2014
Export and manufacturing sectors are the key drivers in the Chinese economy. In June, China’s manufacturing sector has picked up their pace, according to a survey conducted by HSBC. This is a sign that the Chinese economy is benefitting from the recent stimulus measures.
The purchasing manager’s index (PMI) of the bank has climbed to 50.8 in the month of June, as compared to 49.4 in May. The reading of PMI above 50 indicates expansion. This is the first time after December that HSBC bank’s PMI has reached this high level.
The country has undertaken different measures in the past few months. These measures have helped to cut down taxes for small firms, which in turn has boosted the economy of the country.
Market analysts have stated that this latest PMI reading is a unit to measure activity in various small scale factories. A PMI above 50 shows that the new policies introduced by the Chinese government have impacted positively on the economy’s growth.
After many years of robust expansion, China experienced a slow growth rate in the recent few years. Due to this slowdown in economy, the company faced decline in the demand for its exports from various key markets around the world. However, the government has taken various steps to sustain its high growth rate, and at the same time boost domestic demand, and to regain the balance in its economy.
Reduction in taxes has helped small firms to gain pace in the construction of railway lines throughout the country.