Friday, 03 April 2015 07:04

China Economy May Continue Better Results This Week

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China has shown good result in trade balance and in Manufacturing PMI this month. The economy is right now off the growth track but policy makers are trying to boost the growth engines again by increasing domestic demand.

At present the economy which was more dependent on investment and export is trying to stabilize on domestic consumption. Today People Bank of China released new loan reported which mentioned that Chinese Banks landed 775 billion Yuan in last month, 275 billion less than previous landing. On the other side money supply has increased by 13.2% indicates increasing spending and investment compare to earlier month.

At China, productivity is decreasing and resources are standing unused. Factories are running at their lower capacities and low demand and high cost may further dampen the progress.

Trade balance data has shown exports improvement to 6.5% in April from 3.5% in March. Now the effect of fake invoices is near to end. Slack in export orders has keep exports little low. But positive signs have started coming from the world second largest economy.

Tomorrow National Bureau of Statistics will release Industrial Production which is likely to improve by 0.1 percentage point compare to previous 8.8%. The Bureau will also release Fixed Asset Investment data which has remained record low in last two months. Falling investment is also a matter of concern for the economy.

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