China's Manufacturing Sector Continues to Expand in April

May 3, 2010
Marks the 14th straight month of expansion

As domestic and overseas demand for Chinese-made goods remained robust, China's manufacturing activity accelerated in April, a government survey showed on May 1.

The purchasing managers' index rose to 55.7 last month, the China Federation of Logistics and Purchasing said, marking the 14th straight month of expansion as the world's third-largest economy powered out of the financial crisis.

The April figure compares with 55.1 in March.

The federation warned of increasing inflationary expectations after input prices continued to rise in April, indicating mounting cost pressures on manufacturers.

The sub-index for input prices rose to 72.6 in April from 65.1 in March, with five of the 20 industries surveyed by the federation above 80, the federation said.

"The pressure on production costs is expected to increase significantly. We need to pay close attention to the difficulties that companies are facing," government analyst Zhang Liqun said.

China's red-hot economy grew by a blistering 11.9% in the first quarter of 2010, fuelling fears the booming economy was at risk of overheating.

The federation also cautioned that the uncertain global economic outlook and growing frictions between China and its trade partners could restrict the recovery in Chinese exports this year.

Copyright Agence France-Presse, 2010

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