China LEI Rises: "Signals a moderate growth rebound"

The Conference Board: China Monthly Leading Economic Index

China Monthly LEI The current May 2012 reading is a post-recession high.



Andrew Polk, resident economist at The Conference Board China Center in Beijing, said "The China LEI rose in May, driven by the rebound in bank loans and real estate activity. While exports remain subdued, bank credit has picked up recently on fiscal and monetary policy measures designed to support growth and boost demand for loans. Current economic conditions, gauged by the CEI for China, improved somewhat from April, but the rate of growth so far this year has been tepid, and both consumer and producer prices fell sharply in May, suggesting weak domestic demand. Taken together, the economy will continue to face strong headwinds from the softness in both external and domestic demand, but the LEI signals a moderate growth rebound based on policy support."



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China Manned Space Mission: Shenzhou-9 Lifts Off!

● Baidu Planet ●

The Shenzhou-9 manned spacecraft has lifted off to dock with the Tiangong-1 ("Heavenly Palace 1") space lab.

Manned Mission to Chinese Space Lab  China has launched a manned mission to its Tiangong-1 space lab. Report by Sam Datta-Paulin.

China Preps Space-Lab Mission, Featuring First Female Astronaut China is making the final preparations for a manned mission to the Tiangong-1 space lab, featuring the nation's first female astronaut. Report by Sam Datta-Paulin.

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China Manufacturing Contracts for 7th Consecutive Month: "Weakening Demand"

The HSBC China Manufacturing Purchasing Managers' Index, compiled by Markit, decreased -0.9 to 48.4 in May, negating last month's gain. This is the 7th consecutive month below 50, which indicates contraction. The reading is above the 32-month low of 47.7 in November 2011. An index reading above 50 indicates an overall increase in manufacturing. The China Manufacturing PMI has been just below 50 for 10 of the past 11 months.

China Manufacturing PMI Manufacturing began contracting, an Index reading of less than 50, in July 2011. The chart peak was 55.3 in November 2010. The short and long-term trends (3 and 12 months) continue downward. The intermediate-term trend (6 months) has begun increasing. The PMI is a percentage - not a total.



Hongbin Qu, Chief Economist, China & CoHead of Asian Economic Research at HSBC, said: "May’s final reading confirmed that manufacturing growth slowed further on weakening demand from both global and domestic markets. This points to a continuous slowdown of the real economy in 2Q and should promote Beijing to step up easing efforts in the coming months. On top of monetary easing via additional RRR cuts and one 25bp rate cut, Beijing policy makers should allow fiscal measures and private investment to play a bigger role in supporting growth."

China Manufacturing Contracts: "Modest Deterioration"

The HSBC China Flash Manufacturing Purchasing Managers' Index, compiled by Markit, decreased -0.6 to 48.7 in May, negating last month's gain. This is the 7th consecutive month below 50, which indicates contraction. The reading is above the 32-month low of 47.7 in November 2011.

An index reading above 50 indicates an overall increase in manufacturing. The China Manufacturing PMI has been just below 50 for 10 of the past 11 months. The flash estimate is typically based on approximately 85%–90% of total PMI survey responses each month and is designed to provide an accurate indication of the final PMI data to be reported at the beginning of the month.

China Manufacturing PMI Manufacturing began contracting, an Index reading of less than 50, in July 2011. The chart peaks were 55.7 in March 2010 and 55.3 in November 2010. The short and long-term trends (3 and 12 months) continue downward. The intermediate-term trend (6 months) has begun increasing. The PMI is a percentage - not a total.



Hongbin Qu, Chief Economist, China & CoHead of Asian Economic Research at HSBC, said: "Manufacturing activities softened again in May, reflecting the deteriorating export situation. This calls for more aggressive policy easing, as inflation continues to slow. Beijing policy makers have been and will step up easing efforts to stabilize growth, as indicated by a slew of measures to boost liquidity, public housing, and infrastructure investment and consumption. As long as the easing measures filter through, China will secure a soft landing in the coming quarters."

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