China's PMI Surges

ChinaThe HSBC China PMI flashed a surge to 51.9 in January based on its preliminary measure, with any number above signaling expansion. The final count for December was 51.5. The figure almost certainly means that overseas demand for China exports have picked up, although with recessions in much of Europe and Japan, and the U.S. in an historically slow growth phase, it is hard to figure where. It may be that internal consumption of goods by China's massive middle class it part of the demand. It may also be that inventories of manufacturer goods in China has grown, and not actually been sent overseas.

According to Bloomberg:

The data suggest that China's expansion at the start of 2013 will equal or exceed its 7.9 percent clip in the fourth quarter. Sliding Japanese exports and below-forecast growth in South Korea reported today underscore Asian economies' dependence on China as austerity measures in Europe limit demand.

"Despite the still-tepid external demand, the domestic- driven restocking process is likely to add steam to China's ongoing recovery in the coming months," Qu Hongbin, HSBC's chief China economist in Hong Kong, said in a statement.

Filed under: 24/7 Wall St. Wire, China, General Tagged: featured
Read Full Story


NASDAQ 7,234.31 -5.16 -0.07%
S&P 500 2,716.26 -15.96 -0.58%
DJIA 24,964.75 -254.63 -1.01%
NIKKEI 225 21,925.10 -224.11 -1.01%
HANG SENG 30,873.63 -241.80 -0.78%
DAX 12,487.90 102.30 0.83%
USD (per EUR) 1.23 -0.01 -0.49%
USD (per CHF) 0.94 0.01 0.73%
JPY (per USD) 107.37 0.66 0.62%
GBP (per USD) 1.40 0.00 0.07%

Can't get enough business news?

Sign up for Finance Report by AOL and get everything from retailer news to the latest IPOs delivered directly to your inbox daily!

Subscribe to our other newsletters

Emails may offer personalized content or ads. Learn more. You may unsubscribe any time.