Growing consumer sales underpin China’s growth
The service sector (55.4) is continuing to outpace manufacturing (52.6) as it leads private sector growth in new sales terms.
The Headline SMI (51.8) for China, which measures the overall state of the economy reflected increased levels of growth in the month, confirmed by the improving levels of Sales and Market Growth sub-indexes.
The Prices Charged Index (51.1) continues to reflect price pressures over the past year with the manufacturing sector reporting the largest price increases, moreover, February data suggests that price inflation is showing no signs of slowing.
Business confidence has grown from a low in September of 50.7 to register 51.0 in February.
This level is low by the historical standards of the boom years but improving sentiment is being vindicated by solid sales and market growth.
The jobs market appears stable with little change reported month-on-month.
The Chinese Yuan remains very significantly undervalued compared with the U.S.
Dollar registering -24% on the World Price Index (WPI) scale (see below) in February signifying that Chinese exports remain very competitive. ■