Official Statement by The Conference Board Beijing, July 20, 2011 - The Conference Board Leading Economic Index (LEI) for China increased 0.5 percent in May to 155.0 (2004 = 100), following a 0.1 percent increase in April and a 0.9 percent increase in March. Four of the six components contributed positively to the index in May. Says Jing Sima, economist for The Conference Board: “The modestly rising trend of the China LEI since the beginning of 2011 continues to point to economic expansion for the rest of the year. In May, weakness in consumer expectations was offset by credit expansion and slightly improving manufacturing activity. However, consumer prices continue to rise rapidly, and growth in retail sales has moderated somewhat compared to last year, suggesting that consumption growth may be weakening as one of the contributors to output growth.”
Trend The short-term trend has been upwards with 3 consecutive monthly increases. The intermediate-term trend (6-month moving average) is mostly level, with a slight increase in May. The long-term trend (12-month moving average) continues upwards for the 5th consecutive month.
Cycle History (Beginning in January 2010) The intermediate-term and cyclical high has been the current 155.0 in May 2011. The intermediate-term and cyclical low has been 142.8 in January 2010.
China Monthly Leading Economic Index (Chart) Below is a chart of the China Monthly Leading Economic Index from January 2010 through the latest month reported.
Commentary The China Monthly Leading Economic Index is at a new high of 155.0 in May 2011. Overall, moderate and continuing economic growth is forecast for the remainder of 2011. A small slowdown in 2011 compared to the strong 2010 GDP growth (+10.3% YoY) is anticipated. China is now the second largest economy in the world as reviewed here [China Now Second Largest Economy in the World (Video, GDP Chart) *Surpasses Japan as #2*]
About The Conference Board Leading Economic Index (LEI) for China The Conference Board Leading Economic Index (LEI) for China was launched in May 2010. Plotted back to 1986, this index has successfully signaled turning points in the economic cycles of China. The six components of The Conference Board Leading Economic Index for China include:
* Total Loans Issued by Financial Institutions (source: People’s Bank of China)
* 5000 Industry Enterprises Diffusion Index: Raw Materials Supply Index (source: People’s Bank of China)
* NBS Manufacturing PMI Sub-Indices: PMI Supplier Deliveries (source: National Bureau of Statistics)
* Consumer Expectations Index (source: National Bureau of Statistics)
* Total Floor Space Started (source: National Bureau of Statistics)
* NBS Manufacturing PMI Sub-Indices: Export Orders (source: National Bureau of Statistics)
About The Conference Board The Conference Board is a global, independent business membership and research association working in the public interest. Our mission is unique: To provide the world’s leading organizations with the practical knowledge they need to improve their performance and better serve society. The Conference Board is a non-advocacy, not-for-profit entity holding 501 (c) (3) tax-exempt status in the United States.
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