China PMI : 2004 – March 2012

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April 1, Wall Street Journal Discusion:

“The semi-official China Federation of Logistics and Purchasing’s PMI suggests the economy is bouncing back. A reading of 53.1 in March is up strongly from 51.0 in February and some way above the 50 mark that separates growth from contraction.

Contrast that with the HSBC Markit PMI, which came in at 48.3, down from 49.6 in February, and suggesting the manufacturing sector is contracting at an accelerating rate.

One explanation lies in different sample sets. The big state-owned firms that have been the first to benefit from China’s moderate move to ease policy conditions are better represented in the CFLP sample. The low score for the HSBC PMI shows small private firms continuing to suffer.

But there might also be seasonal adjustment issues at work.”

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