Chinese manufacturing seen expanding in February

China’s manufacturing expanded and a key measure of its exports rose in February, a survey suggests, easing concern about an economic slowdown.

 

China’s Purchasing Manager’s Index, an indicator of manufacturing activity, rose to 51.0 from 50.5 in January.

The new export orders sub-index rose to 51.1 from 46.9. A reading above 50 indicates expansion.

There have been fears that a slow recovery in the US and the eurozone debt crisis may hurt China’s growth.

The latest data comes amid indications that the global economic environment may be stabilising.

Last week, eurozone leaders approved a fresh bail out package for Greece worth more than 130bn euro (£110bn; $170bn), easing fears of a Greek default.

Meanwhile in the US, Ben Bernanke, the chairman of the Federal Reserve central bank, told Congress that the US economy is continuing to recover.

And US growth for the fourth quarter was revised up from 2.8% to 3%.

The news has been encouraging, especially for China, which relies heavily on demand for its exports from the US and eurozone to support its growth.

“It is clear that there has been a stabilisation of China’s industry as well as the external environment,” Alistar Thornton of IHS Global in Beijing told the BBC.

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