China’s manufacturing expanded and input costs climbed, underscoring the case for more interest- rate increases to tame inflation pressures in the fastest- growing major economy.
China’s manufacturing grew at the slowest pace in 17 months in July as the government clamped down on property speculation and investment in energy-intensive and polluting factories.
Crude oil climbed to the highest in four days as increased profit forecasts drove Asian equities higher and investors grew more optimistic that China’s growth will bolster fuel demand.
China’s manufacturing growth slowed more than economists forecast in June, adding to signs that the world’s fastest-growing major economy is cooling.
China’s yuan posted its best weekly gain since May after the government said it will prevent economic growth from dipping below 7 percent as data showed manufacturing contracted further in July.
Li Pingri remembers swimming with fish and shrimp as a boy in Guangdong’s Chigang waterway in China. Today, even after the city spent 48.6 billion yuan ($7.2 billion) on a cleanup, he can’t stand the canal’s smell.
China’s official manufacturing index rose to the highest level in seven months as new orders and export demand climbed, underscoring optimism the economy is recovering after a seven-quarter slowdown.
A Chinese manufacturing index dropped to the lowest level since February 2009, bolstering the case for fiscal or monetary loosening to support the expansion of the world’s second-biggest economy.
"There's certain downward pressure in the current economic environment."
- Zhang Liqun on Aug 31, 2014