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Manufacturing Growth in China & India Hint at Global Recovery

03 Nov

Data released earlier this week illustrated strong growth in the Chinese and Indian manufacturing sectors, boosting prices of commodities and natural resources and suggesting that the world is on its way to global economic recovery.

Strong levels of domestic demand have helped lift China’s official purchasing managers index (PMI) to a 6 month high of 54.7, trumping market predictions of 52.9.  This growth is significant because the index typically cycles down in October.  Similarly, Indian manufacturing has benefited from steady domestic demand, with the HSBC Market PMI for India rising to 57.2 in October.

The United States has also reported surprisingly strong manufacturing data this month.  October figures from the Institute for Supply Management show the domestic manufacturing sector growing at its fastest pace since May.  The Institute expects stronger demand for U.S. exports in the auto and technology sectors, and with the expected influx of money from the Federal Reserve to boost growth, the manufacturing sector could stand to benefit further.  Read more…

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