November 26, 2012
Optimism Rises as China, EU & U.S. Tides Turn
Bill Jamieson, The Scotsman
What changed last week was that the outlook turned less negative. In China, the manufacturing purchasing managers index (PMI) for November rose from 49.5 to 50.4, the movement across the “boom-or-bust” line at 50, taken as a sign that China’s economy has turned a corner and is about to pick up speed. As Stephen Lewis, of Monument Securities puts it, these and other figures suggest Chinese gross domestic product (GDP) has established a new “normal” rate of growth of 7-8 per cent a year, rather more sedate than the 10 per cent which we came to take for granted.
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