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Global Economy Remains Vulnerable, Despite Progress with China

chinese economic data

The impact of the US tariffs China is showing greater resilience than even its officials expected. The actions of the Chinese authorities appear to have stabilized their economy, at least momentarily.

The Purchasing Managers Index (PMI) in China rose from 49.2 in February to over 50 in March. That is the index’s biggest increase since 2012 and well ahead of expectations from leading economists. A reading above 50 indicates growth in activity.

With the overstayed trade conflict, new orders and new export orders were at their highest levels in six months.

These numbers triggered a impulse of bullish activity on stock markets around the world. Still, investors should be wary of the slightly warped Chinese economic data, due to the Chinese New Year varying from year to year, which can distort the data.

The trade talks between the US and China are at their pointy end, with China’s lead negotiator, Vice-Premier Liu He, arriving in the US this week to try to finalize a deal.

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