July 1 (Bloomberg) -- China's manufacturing expanded for a fourth
July 1 (Bloomberg) -- China's manufacturing expanded for a fourthmonth as government stimulus spending and record bank lending sparked arecovery in the world's third-biggest economy. The Purchasing Managers' Index rose to a seasonally adjusted 53.2in June from 53.1 in May, the Federation of Logistics and Purchasingsaid today in Beijing in an e-mailed statement. A reading above 50indicates an expansion. China's economy may keep improving in the third and fourthquarters, enabling the nation to meet its 8 percent economic growthtarget for this year, central bank Governor Zhou Xiaochuan said thisweek. Prices of copper, used for autos and construction, are headed fortheir biggest six-month gain in 22 years as Chinese buyers boost importsto records to replenish stockpiles. "China's recovery is gathering further momentum," said Lu Ting, aneconomist with Bank of America Merrill Lynch in Hong Kong. "It has beenrecovering faster than the market had expected." Higher coking coal prices are adding to evidence that demand forsteel is recovering. Fushan International Energy Group Ltd., a producerof steelmaking coal, said last month that it raised prices for the firsttime since January.
Higher GDP Forecasts
Bank of America Merrill Lynch and JPMorgan Chase & Co. this weekraised their forecasts for second quarter growth. The former expectssecond-quarter GDP growth of 7.6 percent, compared with 7.2 percentpreviously. JPMorgan increased its forecast to 6.9 percent from 6percent. The government's 4 trillion yuan ($585 billion) stimulus plan andbank lending of 5.84 trillion yuan in the first five months, almosttriple lending a year earlier, are driving growth after exportscollapsed. The outlook is improving in some of China's largest export markets.Consumer confidence in the U.K. rose to a 14-month high in June andoptimism over the economic outlook in Europe rose to the highest sinceNovember. Investor George Soros said June 22 that the worst of theglobal recession "is behind us." China's lending boom sparked a 32.9 percent surge in urbanfixed-asset investment in the first five months, the fastest growth infive years. New loans in June may exceed 1 trillion yuan, triple lendingin the same month a year earlier, China Business News reported June 30.
source: Bloomberg
Higher GDP Forecasts
Bank of America Merrill Lynch and JPMorgan Chase & Co. this weekraised their forecasts for second quarter growth. The former expectssecond-quarter GDP growth of 7.6 percent, compared with 7.2 percentpreviously. JPMorgan increased its forecast to 6.9 percent from 6percent. The government's 4 trillion yuan ($585 billion) stimulus plan andbank lending of 5.84 trillion yuan in the first five months, almosttriple lending a year earlier, are driving growth after exportscollapsed. The outlook is improving in some of China's largest export markets.Consumer confidence in the U.K. rose to a 14-month high in June andoptimism over the economic outlook in Europe rose to the highest sinceNovember. Investor George Soros said June 22 that the worst of theglobal recession "is behind us." China's lending boom sparked a 32.9 percent surge in urbanfixed-asset investment in the first five months, the fastest growth infive years. New loans in June may exceed 1 trillion yuan, triple lendingin the same month a year earlier, China Business News reported June 30.
source: Bloomberg
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