Friday, December 3, 2010

CHINA: Costs are rising

 

Statistics released by the China Federation of Logistics and Purchasing (CFLP) on Wednesday show that the manufacturing industry’s purchasing managers index (PMI) rose to 55.2 percent in November – an increase of 0.5 percent from a month earlier. This marks the fourth consecutive month of PMI growth in the industry. A PMI rating above 50 indicates economic expansion while a rating below 50 suggests that the economy is contracting.

Warning of the mounting inflationary challenges ahead, China’s input price index rose by 3.6 percentage points – the highest of the indices – to 73.5 percent in November, a far cry from the 50.4 percent it recorded in early July.

China Business Handbook

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