Royston Carr Asset Management analysts say China's official PMI for last month reached a higher than expected reading of 51.9.
Online PR News – 27-September-2018 – Taipei City, Taiwan – Analysts at Royston Carr Asset Management say that China's official PMI for last month was 51.9. They had expected a decline in China's manufacturing growth for the month of May, but the data was better than expected.
China recently reported that manufacturing activity expanded by more than anticipated last month, with the official manufacturing PMI reading reaching its highest point in 7 months.
Royston Carr Asset Management analysts say it was forecast that the Chinese manufacturing PMI would fall to 51.3 last month, down from 51.4 the previous month.
A reading higher than 50 is an indication of growth while a reading below 50 indicates contraction.
"Growth in China's manufacturing sector can be attributed to robust supply and demand factors and growth in worldwide commodity prices," says Martin Crossley, Head of Corporate Equity at Royston Carr Asset Management.
As China shifts to a services and consumption driven economy, Royston Carr Asset Management analysts say the country's ability to keep momentum while President Xi gives up some economic strength in exchange for economic stability is admirable.
Economic activity in China is under close scrutiny by the rest of the world as US President Donald Trump focuses on his country's sizeable trade deficit with the world's second biggest economy.
The White House recently announced that it would finalize a list of imports to the value of $50billion in Chinese imports that would be subject to import duties of up to 26 percent.
In addition, Trump will announce limits applying to Chinese acquisition of technology during the course of this year.