Months before China closes the lid on the Year of the Dragon, Guangzhou Aoking Leather Co. is ramping up luggage production, adding to signs that the slowdown in the worldâ€™s second-largest economy is poised to ease.
â€œPeopleâ€™s sentiment and confidence in the economy and in their income prospects are improving,â€ says Song Chunhong, a deputy marketing manager at the company in coastal Guangdong. Sheng Laiyun at the National Bureau of Statistics sees broader signs of recovery in the more-developed seaboard provinces that are usually first to register shifts in the economyâ€™s prospects. â€œThe duck knows first when the river becomes warm in spring,â€ he said last month, quoting an 11th-century Chinese poem.
Manufacturing expanded in October for the first time in three months, according to a purchasing managersâ€™ index released yesterday by the government.
While Chinaâ€™s years of 10 percent growth may be behind, a stabilization around 8 percent would help counter what the International Monetary Fund last month called an â€œalarmingly highâ€ risk of a steeper drop in global expansion. Overseas firms from computer-maker Dell Inc. (DELL) to Hong Kong jewelry makers see sales in China improving in coming months, and domestic manufacturers are more confident, a release showed yesterday.
â€œWe have seen an increasing amount of evidence for green shootsâ€ in China, said Lu Ting, head of Greater China economics at Bank of America Corp. in Hong Kong who this week raised his fourth-quarter forecast for economic growth to 7.8 percent from 7.5 percent. The nationâ€™s gross domestic product will rise 8.1 percent in 2013, up from 7.7 percent in 2012, he said.
Via – Bloomberg
This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.