Every month, China is moving back toward 10% GDP growth, or is headed for recession, depending on GDP, housing prices, interest rates which encourage lending or not, and, of course PMI. The problem with every one of these numbers is that many economists believed they are gamed by local politicians to help their fortunes with the central government of the People’s Republic.
Taken for what it is worth, According to Bloomberg
China’s manufacturing unexpectedly accelerated in May, indicating that a slowdown in economic growth in the first quarter may be stabilizing.
The Purchasing Managers’ Index rose to 50.8 from 50.6 in April, the National Bureau of Statistics and China Federation of Logistics and Purchasing said in Beijing yesterday. That was higher than all estimates in a Bloomberg News survey of 30 analysts and compares with the median projection of 50, which marks the dividing line between expansion and contraction.
The report may provide some comfort to policy makers after the preliminary reading of a private manufacturing survey pointed to the first contraction in seven months. Premier Li Keqiang said last week that government measures to reform the economy will be accompanied by tapered-off levels of growth and warned last month that new stimulus would create risks.
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