1 Apr 2013

China's Manufacturing data shows good indications

China’s manufacturing expended at a faster pace last month, indicating a recovery in the world’s second-largest economy is sustaining momentum. (As per Bloomberg report)
The Purchasing Managers’ Index was 50.9, the National Bureau of Statistics and China Federation of Logistics and Purchasing said today in Beijing, an 11-month high and up from 50.1 in February. A separate gauge from HSBC Holdings Plc and Markit Economics rose to 51.6 in
A pickup in manufacturing will help the new government under Premier Li Keqiang sustain a rebound after factory output had the weakest January-February growth since 2009 and Goldman Sachs Group Inc. questioned the strength of exports. Faster expansion may also fuel inflation, spurring tighter monetary policy from the central bank.
“We are clearly in a lot better state than we were at the end of last year,” Alistair Thornton, a Beijing-based economist at researcher IHS Inc., said in a Bloomberg Television interview, terming the momentum “modest.” At the same time, the economy faces “fairly large headwinds” including property curbs and tighter supervision of so-called shadow banking, he said.
The surveys compare with a quarterly report showing confidence among big Japanese manufacturers improved by less than economists estimated. Another HSBC survey showed South Korea’s manufacturing expanded at a faster pace in March.
China’s largest cities, including Beijing and Shanghai, tightened rules on home purchases, effective yesterday, after the central government called for stepped-up efforts to cool the property market. The nation’s banking regulator told lenders last week to limit investments of client funds in debt that isn’t publicly traded and to isolate such risks from their operations.
Economic growth may have accelerated for a second quarter to 8.1 percent in the first three months of this year, according to the median estimate in a Bloomberg News survey last month.

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