China manufacturing grows at 2-year high
January 24, 2013 -- Updated 0431 GMT (1231 HKT)
China's manufacturing sector expanded at its fastest pace in two years.
- China's manufacturing sector continues to expand in 2013, according to HSBC
- The China Manufacturing Purchasing Managers' Index rose to a two-year high of 51.9
- Another sign that the world's second largest economy is picking up steam
Hong Kong (CNN) -- China's manufacturing sector continues to expand in 2013, according to a closely-watched indicator -- another recent sign that the world's second largest economy is picking up steam.
HSBC's initial China Manufacturing Purchasing Managers' Index (PMI) rose to a two-year high of 51.9 in January. Any reading over 50 indicates an acceleration in growth.
"Thanks to the continuous gains in new business, manufacturers accelerated production by additional hiring and more purchases," HSBC's Chief China Economist Qu Hongbin wrote in a statement. "Despite the still tepid external demand, the domestic-driven restocking process is likely to add steam to China's ongoing recovery in the coming months."
The data from HSBC showed China's manufacturers are seeing a pickup in both new orders and employment, signs there may be growing optimism for the sector in 2013. HSBC's China PMI is seen as a forward-looking indicator, based on surveys with executives in over 420 manufacturing companies. The full reading will come out on February 1.
Last week, China reported better than expected 7.9% growth for the fourth quarter, figures that helped ease fears the country might be headed for a severe slowdown. While still expanding at levels most developed nations would envy, China's economy is no longer the juggernaut it once was. The country averaged growth around 10% for nearly three decades on the back of its manufacturing sector.
Data out last week showed industry still makes up 38% of GDP. Many hope to see China build its consumer sector so that shoppers in the world's second largest economy can help lift global growth. It's a goal the government supports, according to its twelfth five-year plan (2011-2015), which calls for an increase in domestic consumption and growth of the service sector by four percentage points.
Part of complete coverage on
March 3, 2014 -- Updated 1033 GMT (1833 HKT)
Mobile World Congress spans the full spectrum of untethered gadgetry Explore this year's top trends with Stuff Magazine Editor Will Findlater.
February 28, 2014 -- Updated 1623 GMT (0023 HKT)
Cocoa-nomics: Why chocolate really doesn't grow on trees. CNN returns to Africa's cocoa plantations to examine the fight against child labor.
February 27, 2014 -- Updated 1958 GMT (0358 HKT)
CNN's Maggie Lake speaks to Lego CEO Jørgen Vig Knudstorp about why Lego continues to be a hugely popular toy.
February 27, 2014 -- Updated 2032 GMT (0432 HKT)
A Japanese rocket roared into orbit carrying what NASA calls its most precise instrument yet for measuring rain and snowfall.
February 28, 2014 -- Updated 2003 GMT (0403 HKT)
When you hail yourself as a "passionate advocate" for job-seekers, you probably ought not blast one of those job-seekers in a snide e-mail.
February 26, 2014 -- Updated 2201 GMT (0601 HKT)
Love that chocolate Haagen-Dazs ice-cream? But what about the way its makers treat their farmers? Oxfam reveals the ethics behind the brands.
February 20, 2014 -- Updated 1121 GMT (1921 HKT)
SnapScan is an award-winning app allowing buyers to pay with their smartphone -- no need to worry about carrying cash or lost credit cards.
February 18, 2014 -- Updated 1452 GMT (2252 HKT)
In the wake of recent credit card breaches, CNN's Richard Quest explores the threats of the non-cash economy. Is your money as safe as you think?
February 19, 2014 -- Updated 0833 GMT (1633 HKT)
Like many companies in China, Fu Shou Yuan uses celebrities to attract clients. Except, in this case, they're dead. They're in the funeral business.
February 19, 2014 -- Updated 1255 GMT (2055 HKT)
Coca-Cola is staying afloat as the soda market shrinks, and many point to a marketing strategy around the so-called "secret recipe."
Today's five most popular stories