CHART OF THE WEEK
China’s manufacturing PMI indices bounced back significantly in March. The official PMI index rose 1.2 points to 50.2, indicating economic growth for the first time since July 2015. The private sector PMI index (Caixin) rose from 48.0 to 49.7, its highest reading in a year.
Our Analysis
The upturn in manufacturing PMIs would appear to indicate that the government’s stimulus policies to support the economy have begun to take hold.
We believe that they should soften the impact of structural slowdown on the Chinese economy.
The opinion expressed above is dated April 1st, 2016 and is liable to change.
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