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 May 2013
The Econometer

FIRST QUARTER GROWTH SLOWS UNEXPECTEDLY

China's annual consumer inflation slowed to 2.1 percent year on year in March, down from the 3.2 percent registered in February (see Chart 1). Slower inflation is a good sign for China's economy, as it helps the central bank manage expectations of inflation. Most of the drop in inflation can be attributed to a moderation of food prices after February's Lunar New Year seasonal spike. Meanwhile, wholesale prices remained in negative territory, as the Producer Price Index (PPI) fell to 1.9 percent (see Chart 2). The PPI has been in negative territory since March 2012, showing that China's on-going economic recovery is moving at a really slow pace.

Modest manufacturing pick up

China's official Purchasing Managers' Index (PMI) for the manufacturing sector rose to 50.9 in March, indicating a rebound after activity appeared to slow during the first two months of the year (see Chart 3). A PMI reading above 50 indicates an expansion in manufacturing activity from the previous month, whereas a reading below 50 indicates a contraction. March's numbers were the highest since April of last year, and marked the sixth consecutive month the PMI has stayed above 50, indicating continued expansion. However, economists remain cautious on the outlook for Chinese growth, saying the acceleration is mainly due to seasonal factors, and the rise in the March readings was subdued compared to that seen in previous years.

Imports surge

Retail sales were up 12.6 percent year on year in March, a greater increase than the 12.3-percent rise in the January-February period (see Chart 4). Meanwhile, China's trade unexpectedly swung to produce a small trade deficit of $884 million in March. Imports surged in March, rising 14.1 percent to reach an all-time high of $183.1 billion and signaling that domestic demand was gathering the steam needed to drive economic recovery (see Chart 5). Exports rose a more subdued 10 percent to reach $182.2 billion after rising 21.8 percent in February (see Chart 6). Although China runs a large trade surplus with the rest of the world, March's trade figures are not that unusual as manufacturers regularly stock up on imported raw materials that are assembled into exports later in the year. China's Ministry of Commerce has pledged to unveil fresh measures this year to boost imports, in line with Beijing's long-term goal of balancing its trade structure to pursue more sustainable growth by tilting the economy more toward domestic consumption.

Economic growth slips

China's economic growth slowed unexpectedly in the first quarter, raising concerns that a recovery that started in the second half of last year is already losing steam. GDP growth eased back to 7.7 percent from the 7.9-percent rate set in the final quarter of 2012. A surge in liquidity and strong export data had fueled expectations that growth would accelerate again in the first quarter due to policy actions aimed at boosting economic momentum. First quarter data comes as China has pumped record amounts of credit into the economy in an attempt to buoy growth. The weak data reduced the chances of China's policymakers tightening monetary policy to rein in inflation and rising

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