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China PMI figures underline inflationary pressures

Date: 01 Feb 2010

Industrial activity accelerated at record pace in China last month, but rising input and output prices highlight mounting inflationary pressures and raise the likelihood of further fiscal tightening measures.

Keywords (click to search): [China] [PMI] [HSBC] [Hongbin Qu] [inflation]

Leigh Powell
Industrial activity accelerated at record pace in China last month, but rising input and output prices underline mounting inflationary pressure and raise the likelihood of further fiscal tightening.

The HSBC China Manufacturing Purchasing Managers Index (PMI) hit a high in January, rising 1.3 points from December to 57.4. Any level over 50 indicates expansion in manufacturing output.

It was the index’s tenth successive monthly rise and at a pace that is the second fastest in the survey’s history. Tellingly, the index has now risen more than 16 points since posting a...

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