American China Manufacturers & Exporters Association

China Manufacturers
-Tips for a Building a Fruitful Relationship with Them

While using manufacturers in China to produce products may greatly reduce labor costs, problems such as inadequate quality control and excessive defect products may occur frequently.  Therefore, it would be wise to use the services of companies that offer product inspections and quality controls..

China Manufacturers News

China manufacturers see production, orders improve in July - CLSA
Monday, August 1, 2005 4:07:28 AM

BEIJING (AFX) - Business conditions for China's manufacturers improved in July, with a key purchasing managers' index (PMI) reporting its first rise in four months, French investment bank CLSA said

CLSA said in its first PMI report for the third quarter that the index, which provides a snapshot of the health of the country's manufacturing sector, rose to 51.5 in July from 51 in June. The modest improvement, based on slightly stronger growth in both output and new orders over the month, compares favorably to the "no-change" mark of 50

And it matches the country's new official PMI, released today by the National Bureau of Statistics and China's Federation of Logistics & Purchasing (CFLP), which also registered 51.5 for July. But while the official index posted its fourth consecutive monthly decline, CLSA's PMI reported a positive trend

"Over a quarter of all manufacturers report that they had raised their production in July from a month earlier -- generally in response to rising volumes of new work and the start of new production lines," the report said

"Expansion of total order books was also reported by over a quarter of all companies surveyed, with these firms linking the rise to firmer market demand and the launch of new products. Modest growth of export sales was again reported." CLSA noted, however, that growth rates for both output and new business remain down on long-term averages, reflecting oversupply in certain products

A quickening in delivery times, further slides in average input and output prices, plus the first fall in inventories of inputs in five months, all point to the saturation of selected markets, the report said

"Stocks of finished goods, in contrast, rose marginally for the first time since May 2004, but the increase was largely unplanned and the result of weaker than anticipated sales," it said

CLSA also said that China's manufacturing workforce also continued to expand in July, but noted the increase was marginal with most firms (92 pct) making no change to staffing levels