Chinese Manufacturing Grows by Most Since April 2004

[Joanne98]

Source: Bloomberg


Jan. 4 (Bloomberg) -- Chinese manufacturing expanded by the most in five years in December, supporting estimates that growth has accelerated to more than 10 percent in the world’s third- biggest economy.

A purchasing managers’ index rose to a seasonally adjusted 56.1, HSBC Holdings Plc and Markit Economics said today in an e- mailed statement. The measure is based on a survey of more than 400 manufacturing companies.

Today’s release may deepen concern that inflation pressures are building and parts of the Chinese economy could overheat this year. Liu Mingkang, China’s top banking regulator, said today that while asset bubbles are a threat, banks have “more than” enough capital and should extend loans to consumers and smaller businesses to sustain growth.

“China’s economy is continuing a V-shaped recovery and economic growth may have quickened to 11 percent in the fourth quarter,” said Sun Mingchun, chief China economist at Nomura Holdings Inc. in Hong Kong. “There are early signs that the economy may be entering an overheating stage,” he added, citing rising raw-material costs and company inventories at high levels.


Read more: http://www.bloomberg.com/apps/news?pid=20601068&sid=a.lj0IQkFLCE

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Must be nice to have a manufacturing sector! SARCASM

[westerebus]

1. There's bubbles...

then there's China any thing you can do in the west, we can do bigger, faster, cheaper by the dozens bubble.

[pscot]

2. Who's buying

all that stuff the Chinese say they are making? If they're actually making it.

[westerebus]

3. Very good question.

Has any one seen any reports on Xmas sales? I haven't. I haven't really looked either. Bad me.

I would have thought that if we are recovering and spending money again, TPTB would have reported that message at every opportunity. Could be I'm just deaf.