Econintersect: China’s purchasing managers’ index (PMI) fell to 52.9 in January from 53.9 in December, the lowest in five months, indicating a slowdown in production and economic growth in the face of mounting input prices. According to the China Federation of Logistics and Purchasing, the input price sub-index jumped to 69.3 in January from 66.7 in December as inflationary pressures increased. Consumer prices have been edging higher in recent months, growing 4.6% in December and 5.1% in November 2010. However, despite the dip in the January PMI, it still marked the 23rd consecutive month that the figure has remained over the threshold of 50, which indicates expansion.
In China, and in much of the world, Reuters reports that growth is experiencing headwinds due increasing inflation of food and fuel prices.
Sources: Reuters and China Economic Review
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