Early data show resilient Chinese economy

Earliest indicators show that China’s economic engine is humming this summer, according to Bloomberg.  Confidence of small- and medium-sized companies rebounded in July, satellites are picking up increasing activity on the ground, sentiment of steel traders and producers has improved, while that of sales managers is at the highest level in more than two years. This buoyancy helps offset concern from wary financial investors. The signals point to resilience in the world’s second-largest economy, which grew a faster-than-expected 6.9% last quarter. Strong expansion allows policy makers to focus on cutting excessive and speculative borrowing, which may eventually hurt growth later this year. Standard Chartered Plc’s Small and Medium Enterprise Confidence Index snapped a three-month streak of declines and rose to 56, according to the monthly survey of more than 500 companies. Manufacturing picked up in July, according to the China Satellite Manufacturing Index, which rose to 50.5 this month from 49.5 in June.