SteelOrbis Shanghai
China's January purchasing managers' index (PMI) rose for the second straight month to 45.3 from 41.2 in December and from a record low of 38.8 in November. But it was the fourth consecutive month the index remained below 50, indicating the downward pressure facing macro-economy.
According to the experts, the January PMI represents that China's economy is gradually bottoming out. In 2008 drastic fluctuations were observed in the prices of both domestic and overseas raw materials, resulting in a severe inventory adjustment and a sharp decline in industrial production. Since November 2008, the inventory adjustment has been largely completed, and the domestic prices of some raw materials have rebounded. The government's stimulus package had started to show its positive impacts on business through increased orders for capital goods. Therefore, it is expected that China's economy will see a rebound in the first quarter of 2009.