2014.06.2301:02:07UTC+00Manufacturing going up good news for slow moving China

Activity in China’s manufacturing sector experienced an increase in May according to initial data released by HSBC Holdings Plc together with Markit Economics. Preliminary results of their analysis have placed the Purchasing Managers’ Index at 50.8, better than the 49.7 median of what analysts estimated in a survey by Bloomberg. The gain in the gauge to make it breach the 50 level indicate an expansion in the industry, a positive sign for a country wanting for a better economic performance this year.

The so called Flash PMI was based on responses collected by a survey sent to purchasing managers from more than 420 companies. While the final reading is expected to be released still in July 1st, estimates have it falling between 49.0 and 50.4, hovering around the expansion requirement.

Coincidentally, another similar index for manufacturing is expected as well on the same date this time from the partnership of the Chinese Federation of Logistics and Purchasing and the National Bureau of Statistics. Their analysis also showed an increase in the 50.8 May from April’s 50.4.

The world’s second largest economy is currently experiencing a slowdown in growth that a private study has seen to be even worse this quarter with capital spending seen to have taken a hit. Their slow pace has impacted China’s labor market bringing down both wages and hiring levels.

To turn market conditions around, the Chinese government have began enacting measures such as cutting taxes, putting expenditures on infrastructure on the fast track, and limiting interest rates.