China‘s official purchasing managers’ index (PMI) rose to a 13-month high in April, signalling the economy has found a footing and may be recovering from a first-quarter trough, but smaller factories are still struggling.
The pick-up in the PMI to 53.3 from 53.1 in March indicated a further expansion in the vast factory sector, although it was slightly below market expectations of 53.6. Readings above 50 signal expansion while those below 50 point to contraction.
The manufacturing output sub-index rose to 57.2 from 55.2 in March. However, the National Bureau of Statistics noted many important industries remained weak with index readings below 50, among them chemicals, equipment, autos and oil refining.
The improvement in manufacturing likely reflected restocking after a slow winter, said Ting Lu, an economist at Bank of America-Merrill Lynch.
He said infrastructure investment was recovering as the dust settled from a corruption scandal in the…
View original post 425 more words