Manufacturing in China has started growing again — just — according to the official Purchasing Managers’ Index for March, released yesterday, but the PMI survey by leading business media group Caixin, which focuses on small and medium enterprises, and which also asks managers about output, new orders, prices and employment, remains negative.
And the new China sovereign rating on Thursday night from Standard & Poor’s, which paralleled a similar position taken by Moody’s a month ago, warned that the country’s renewed government-driven credit binge risks, over time, undermining its economic success and trajectory.
Both credit agencies have now downgraded their China outlook from stable to negative — while maintaining ratings, for now. But this week’s review from S&P signals a possible lowering of the China rating from -AA within the next two years.
The official PMI, surveying larger corporations, registered 50.2 — with the 50-point level being neutral, higher results showing growth.
This was the first figure to signal growth since last July. In February, the PMI was 49.
He Fan, Caixin Insight Group’s chief economist, said this indicated that “the stimulus policies the government has implemented have begun to take hold” — although manufacturers are continuing to shed jobs.
Read more: China’s manufacuturing activity index flickers to life, just
And the new China sovereign rating on Thursday night from Standard & Poor’s, which paralleled a similar position taken by Moody’s a month ago, warned that the country’s renewed government-driven credit binge risks, over time, undermining its economic success and trajectory.
Both credit agencies have now downgraded their China outlook from stable to negative — while maintaining ratings, for now. But this week’s review from S&P signals a possible lowering of the China rating from -AA within the next two years.
The official PMI, surveying larger corporations, registered 50.2 — with the 50-point level being neutral, higher results showing growth.
This was the first figure to signal growth since last July. In February, the PMI was 49.
He Fan, Caixin Insight Group’s chief economist, said this indicated that “the stimulus policies the government has implemented have begun to take hold” — although manufacturers are continuing to shed jobs.
Read more: China’s manufacuturing activity index flickers to life, just
