ASIA’S RAPID recovery from last year’s recession appeared to be confirmed yesterday by a slew of positive reports on industrial production that suggested economic growth is powering steadily ahead, led by China and India.
Even a worse-than-expected fourth-quarter contraction in Singapore’s gross domestic product failed to dampen the optimistic mood, with economists writing off the setback as pharmaceutical industry volatility.
Purchasing managers’ index reports for China, South Korea, Taiwan and India appeared to confirm that a robust and widespread recovery continues to be under way. The China Manufacturing PMI, produced by HSBC and Markit Economics, rose to 56.1 in December, up from 55.7 a month earlier. The closely watched survey pointed to a ninth consecutive monthly expansion in new order volume, with companies reporting buoyant demand in both domestic and export markets.
The growth in export orders was the fastest since March 2005, reinforcing a positive trend that began in the second half of last year. The HSBC index confirmed the strong trend suggested by the official PMI numbers, released on January 1st, which showed manufacturing activity expanding in December at the fastest pace for 20 months.
Grace Ng, economist at JPMorgan in Hong Kong, said the two PMI series taken together suggested China’s manufacturing sector was experiencing a strong recovery, supported by broad-based demand growth. – (Copyright The Financial Times Limited 2010)
