Shanghai SSE rises as Chinese manufacturing falters
City Index February 1, 2013 3:15 PM
<p>The Shanghai SSE composite has gained ground after fresh PMI data indicated manufacturing output dipped in January.</p>
The Shanghai SSE composite index closed higher this morning (February 1st), after new purchasing managers' index (PMI) data for China's factory sector revealed a slowdown in December 2012.
Fresh PMI data shows that manufacturing output fell to 50.4 in January from 50.6 in December.
This contradicts the recent flash PMI from HSBC for the world's number two economy. The bank's survey, which covers smaller firms, posted a rise to 52.3 in January from 51.5 in December.
Analysts claim the volatility in the two measures is normal and the underlying trend is that the nation is recovering from the slowdown that shook the markets last year.
China's manufacturing sector is one of the biggest growth drivers of the nation and a recent uptick has been attributed to government initiatives that have stoked domestic demand to offset falling export orders.
At close of play this morning, the Shanghai SSE Composite rose by 1.4 per cent to an index value of 2419 points.
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