Chinese Manufacturing Reaches New Record

Manufacturing in China is growing at its fastest pace on record, according to data collected for the HSBC China Manufacturing Purchasing Managers Index.

The index rose for the fourth consecutive month in January, climbing to 57.4 from 56.1 in December, HSBC Holdings PLC said Monday. The reading was the highest since data has been collected for the survey beginning in April 2004. January was the 10th consecutive month the index was above 50, which indicates expansion in manufacturing activity.

"Industrial activity continues to accelerate, implying stronger GDP growth in the first quarter," Qu Hongbin, HSBC's chief economist for China, said in a statement.

Prices charged by manufacturers increased due to rising raw material costs. “Rising input and output prices also point to greater inflationary pressure, which will likely prompt more tightening measures in the coming months,” Qu said.

Contact Thomas L. Gallagher at tgallagher@joc.com.