The future is bright for China

Story link: The future is bright for China

China has been showing signs of strength within its economy for the last few months, which is hopefully a signal for change. The Chinese economy has now strengthened for three months in a row, potentially a brighter future over there compared with most economies that are falling victim to the dreaded credit crunch.

The future is bright for China

China’s manufacturing Purchasing Managers’ Index (PMI) strengthened for a third consecutive month in February, climbing to 49.0% from 45.3% the previous month. Li & Fung Research Centre reports that there were some encouraging signs: all sub-indices were higher than their respective levels in the previous month though many were still lower than the critical level of 50% (i.e. still contracting).
In particular, both the Output Index and the New Orders Index rebounded to the expansionary zone of higher than 50% for the first time since September last year. In addition, the New Export Orders Index grew strongly by 9.7 percentage points to 43.4% in February, compared to the previous month.