Thursday, May 28, 2015Thursday, May 28, 2015

China leaps ahead as Europe ambles forward

Published on Jan 24, 2013 10:57 AM
This picture taken on Jan 9, 2013 shows a woman working in a textile factory that exports clothing materials to the US and Europe in Jiujiang, east China's Jiangxi province. China's economy is poised finally to end a long downward trend in 2013, economists polled by AFP say, as the new communist leadership vows to retool the nation's investment-led development model and promote a "happy life" for all. -- PHOTO : AFP

LONDON (REUTERS) – Growth in Chinese manufacturing accelerated to a two-year high this
month, and a buoyant Germany took the euro zone economy a step closer to recovery.

Data to be reported later from the United States, however, is expected to show factory activity eased, after boosting production to a seven-month high last month.

HSBC’s flash China PMI rose to 51.9 this month, the highest since January 2011. The earliest preview of China’s economic health this year, the flash PMI is the latest indication that the world’s second-largest economy is steadily recovering from a near two-year cool-down.

The euro zone data, meanwhile, supports European Central Bank (ECB) president Mario Draghi’s assertion that the 17-nation currency union is benefiting from “positive contagion”, though the data still hints at economic contraction in the first quarter as the downturn in France went the opposite direction to Germany and deepened.

Enjoy 2 weeks of unlimited digital access to The Straits Times. Get your free access now!