January SMI for China reflects buoyant start to 2017
The service sector (54.4) is continuing to outpace manufacturing (52.6) as it leads private sector growth in new sales terms.
The Headline SMI (51.4), which measures the overall state of the economy reflected modest growth in the month, confirmed by improvements in the Sales and Market Growth sub-indexes.
The Prices Charged Index continues to reflect a significant change in price pressures over the past year with the manufacturing sector reporting the largest price increases.
Business confidence has growth from a low in September to register 51.0 in January – this level is low by historical standards but improving sentiment is being vindicated by improving sales and market growth.
The jobs market appears to be flat but are with factories taking on more new staff than the service sector.
The Chinese Yuan remains very significantly undervalued compared with the U.S. Dollar registering -24% on the World Price Index (WPI) scale.
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