China’s PMI Stabilizing

In: ARC China

6 Sep 2011

According to official surveys, China’s manufacturing sector has showed recent signs of stabilizing, after a slight drop in July. The PMI, which indicates industrial conditions, fell from 50.9 to 50.7 in June, and the drop was less significant than previous predictions had indicated.

Adam Roseman of ARC Investment Partners explained in a newsletter, stating that:

“A figure above 50 denotes expansion, while a reading below that level points to contraction. At its current level, the Chinese PMI suggests that manufacturing growth has nearly stalled in month-on-month terms. The question now is whether the next step for Chinese factory growth will be outright contraction or stabilization. A separate PMI published by HSBC a week ago had pointed at contraction, but the official PMI on Monday offered grounds for cautious optimism.”

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Stay up to date on the economic news from China. Gain insight from leading investors in the Chinese market, like Adam Roseman of ARC Investment Partners. Follow the economic trends and changes occurring in the global marketplace, as they relate to changes taking place in China.