Manufacturing sector is recovering in China

The Purchasing Managers Index, an indicator used to measure the productive activity of the manufactures of a country, stood at 50.5 percent in January, its highest level since October, reflecting some recovery in the sector, officials said.

The Purchasing Managers Index (PMI) takes into account the orders of natural resources and raw materials, and economists estimate that an index above 50 percent means expanding production.

“The January PMI reflects a stabilization of the economic slowdown in the economy. The highest rates of orders of raw materials show that production is recovering, “said Zhang Liqun from the Development Research Center of Chinese State Council.

The Chinese authorities have warned that 2012 could be the year of slower economic growth as a result of the crisis in the Western world and the consequent drop in demand for products.

The China Economic Weekly said China’s foreign trade in 2012 could fall to the lowest levels since the country entered the World Trade Organization (WTO) in 2001, as a result of the appreciation of Chinese currency and the low external demand.