China Growth Back On Track

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Data from The Conference Board show that China’s growth has been rekindled, albeit modestly. “The Conference Board Leading Economic Index for China increased 0.5 percent in May to 155.0 (2004 = 100), following a 0.1 percent increase in April and a 0.9 percent increase in March,” the firm said.

The six components of The Conference Board Leading Economic Index for China include:

Total Loans Issued by Financial Institutions (source: People’s Bank of China)

5000 Industry Enterprises Diffusion Index: Raw Materials Supply Index (source: People’s Bank of China)

NBS Manufacturing PMI Sub-Indices: PMI Supplier Deliveries (source: National Bureau of Statistics)

Consumer Expectations Index (source: National Bureau of Statistics)

Total Floor Space Started (source: National Bureau of Statistics)

NBS Manufacturing PMI Sub-Indices: Export Orders (source: National Bureau of Statistics)

The one set of data does not mean enough to say whether it is a sign of a growth is inflation. Economists will have to wait for PMI and direct inflation data to tell that.

Douglas A. McIntyre