Français 简体中文 About Us

 

 

Home | China Report | Africa Report | Business | Lifestyle | Services
Operating in Union
Chinese premier’s visit to AU Headquarters entrenches support for Africa’s integration and commitment to deepening strategic partnership
Current Issue
Cover Story
Table of Contents
Through My Eyes

 

Subscribe Now
From the Editor
Letters
Newsmakers
Media Watch
Pros and Cons
China Report
Africa Report
Exclusives
Nation in Focus
News Roundup
Business
Business Briefs
Business Ease
China Econometer
Company Profile
Lifestyle
Double Take
Spotlight
Science and Technology
Services
Living in China
Fairs&Exhibitions
Learning Chinese
Universities
Measures and Regulations

 

 

 

Media Links
Beijing Review
China.org.cn
China Pictorial
China Today
People's Daily Online
Women of China
Xinhua News Agency
China Daily
China Radio International
CCTV
 
 
 
 
 

 

China Econometer

 

E-mail
Newsletter
  Mobile
News
  Subscribe
Now
 
VOL.5 March 2013
The Econometer

Turnaround Gains Momentum

China's annual consumer inflation for January eased from a seven-month high in December, with the Consumer Price Index (CPI) falling to 2.0 percent, down from the 2.5 percent registered in December (see Chart 1). Most analysts believe that January's downward trend will prove to be temporary, and expect the country's inflation will pick up in coming months. The People's Bank of China reflected this thinking in its quarterly monetary policy report, which warned of inflationary risks due to rebounding demand, labor supply changes and global monetary easing. In contrast to the CPI changes, factory gate prices maintained their momentum, as the Producer Price Index (PPI) fell by 1.6 percent in January, easing from December's 1.9 percent drop and providing another indication that China's economic growth is stabilizing (see Chart 2). Wholesale prices are expected to pick up soon as warmer weather leads to more construction activity throughout the country. 

Bank lending surges

New lending by China's banks in January ($172 billion) more than doubled from December's figures. Total social financing, which is a broad measure of liquidity in the economy, was particularly solid, indicating a strong demand for credit in China's economy. A more thorough picture of China's economic status will be available later in March when China publishes the bulk of its economic data for January and February. This is done to compensate for the distortion of monthly economic data caused by production shifts around the Lunar New Year holidays when many factories ramp up production before closing for at least a week. 

Manufacturing keeps expanding

China's manufacturing sector continued to expand for the fourth consecutive month, but at a slower pace in January. During that time the official Purchasing Managers' Index (PMI) fell to 50.4 (see Chart 3). A reading above 50 indicates an expansion in manufacturing activity while a reading below 50 indicates contraction. Although manufacturers are continuing to expand, lower sub-indices for export orders and overstocked products point to stable production activity but do not indicate robust growth. Further dissecting the numbers reveals that manufacturers focusing on domestic consumption did particularly well in January, while those engaged in the electronics and shipping sectors fared worst. January's PMI reading was the first to use an expanded sample size of 3,000 firms, a significant jump from the previous sample size of 820 enterprises from 31 industries.

Trade picks up steam

Retail sales are expected to grow around 15 percent in 2013 as a result of upcoming government measures favorable to the logistics sector and SMEs, as well as consumers' growing appetite for online shopping (see Chart 4). Meanwhile, China's trade surplus narrowed slightly to $29.2 billion in January, with both exports and imports displaying robust growth despite the persistently sluggish global economy. Imports jumped 28.8 percent to reach $158.2 billion (see Chart 5) while exports surpassed expectations, rising 28 percent to reach $187.4 billion (see Chart 6). Although the Chinese New Year may have boosted trade to some extent in January, the data reaffirms the view that China's economy is still gaining momentum.

1   2   Next  

 

 

 

Cover Story
-Footprints
-Investment Windfall
-Africa Mission Upgrade
-Operating in Union
 
The Latest Headlines
-Chinese Artist Wins Award in South African Jewelry Competition
-Jacob Zuma Begins Second Term as South Africa President
-Key Universities in China Recruit Students in South Africa
-Chinese Embassy in South Africa Introduces Spokesperson

 

 

Useful Africa Links: Africa Investor | Africa Updates | AllAfrica | Africa Business | ChinaAfrica News | AfricaAsia Business | Irin News |
News From Africa | Africa Science | African Union | People of Africa | African Culture | Fahamu
| About Us | Rss Feeds | Contact Us | Advertising | Subscribe | Make ChinAfrica Your Homepage |
Copyright Chinafrica All right reserved 京ICP备08005356号