The China Purchasing Managers’ Index (PMI), seen as a bellwether of manufacturing activity in the country, rose to 53.5 in April from 52.4 in March, Reuters reported. This is the second straight month the index has finished in excess of 50, which indicates an expansion of activity in the manufacturing sector. A reading of below 50 suggests a contraction. The PMI, compiled by the China Federation of Logistics and Purchasing, plummeted to a record low of 38.8 last November. Sub-indexes for employment, imports and input prices all reached at least 50 for the first time in months, giving further credence to observations that China’s economy is on the road to recovery. Jing Ulrich, chairman of China equities at J.P. Morgan, warned against excessive optimism. She noted that, given the size of inventory surpluses in heavy industries, output could stay at moderate levels while final demand gradually gathers strength.
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