Chinese Manufacturing Preserves Growth Despite Factory Closures
Xu Wei
DATE:  Jan 02 2018
/ SOURCE:  Yicai
Chinese Manufacturing Preserves Growth Despite Factory Closures Chinese Manufacturing Preserves Growth Despite Factory Closures

(Yicai Global) Jan. 2 -- China's manufacturing purchasing managers' indexes fell last month after the introduction of smog curbing measures which caused a supply shortage, but maintained a 15-month streak above 51.

The official index fell 0.2 points to 51.6, the average value for the year, according to data from the National Bureau of Statistics and China Federation of Logistics & Purchasing.

China's Ministry of Environmental Protection brought in measures to cut air pollution earlier this year and vowed to hold local officials more accountable for failing to meet smog targets. Provincial governments responded by closing factories to slash coal use and in turn restricting production and affecting the lives of everyday workers, a move which Liu Changgen, deputy director of the National Environmental Protection Inspection Office, described as lazy.

China has two key purchasing managers' indices. The official PMI is run by the state and comprises 3,000 companies, most of which are state owned. The Caixin index, often known as the Caixin-Market index, reaches out to 500 businesses which are generally smaller and privately owned.

Market demand grew stronger this year compared with last, said Cai Jin, vice chairman of the federation. New economic growth drivers have remained robust and the basis for quality development is strong, he added.

China's non-manufacturing PMI climbed 0.2 points to 55 in the same month.

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Keywords:   PMI,NBS,MANUFACTURING,ENVIRONMENT