China’s manufacturing teetered on the
edge of contraction in July and South Korea’s exports and
inflation declined, indicating that stimulus efforts have yet to
bear fruit.
The Purchasing Managers’ Index in China unexpectedly fell to 50.1 in July, the weakest in eight months, from 50.2 in June, a government report showed today. Fifty marks the dividing line between expansion and contraction. South Korea’s exports slid by more than double the amount forecast by analysts and inflation moderated to a 12-year low.
The data increase odds China and South Korea will add to interest-rate cuts in the coming months as a record-high jobless rate in the euro area drags on global growth. Leaders of China’s ruling Communist Party pledged yesterday to keep adjusting policies to ensure stable growth while signs of a revival in the housing market may improve chances of reversing the nation’s slowdown.
“It’s almost certain that there will be more loosening,” said Daniel Martin, Singapore-based Asia economist at Capital Economics Ltd. “The whole region is going to see fairly disappointing growth this year.” He sees at one more interest- rate cut in China and at least one more this year by South Korea.
Read more: http://www.bloomberg.com/news/2012-08-01/china-july-manufacturing-pmi-50-1-vs-economists-estimate-50-5.html
The Purchasing Managers’ Index in China unexpectedly fell to 50.1 in July, the weakest in eight months, from 50.2 in June, a government report showed today. Fifty marks the dividing line between expansion and contraction. South Korea’s exports slid by more than double the amount forecast by analysts and inflation moderated to a 12-year low.
The data increase odds China and South Korea will add to interest-rate cuts in the coming months as a record-high jobless rate in the euro area drags on global growth. Leaders of China’s ruling Communist Party pledged yesterday to keep adjusting policies to ensure stable growth while signs of a revival in the housing market may improve chances of reversing the nation’s slowdown.
“It’s almost certain that there will be more loosening,” said Daniel Martin, Singapore-based Asia economist at Capital Economics Ltd. “The whole region is going to see fairly disappointing growth this year.” He sees at one more interest- rate cut in China and at least one more this year by South Korea.
Read more: http://www.bloomberg.com/news/2012-08-01/china-july-manufacturing-pmi-50-1-vs-economists-estimate-50-5.html
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