The China Federation of Logistics and Purchasing has announced that, after declining during the previous three months, China's purchasing managers index (PMI) in March rose by 1.2 percent month on month to 53.4.
Cai Jin, deputy chairman of the China Federation of Logistics and Purchasing, stated that the upward PMI trend indicated stable economic development in China. Mr. Cai stated, however, that concerns remained about the economy. Firstly, supply and demand were not increasing at the same rate. The supply index in March increased by 1.9 percent to 55.7, whereas the new order index only increased by 0.9 percent. In fact, in March product inventory increased by 5 percent month on month. Secondly, in March new export orders rose by 1.6 percent month on month, with overseas demand stronger than domestic demand. Mr. Cai said that China should stimulate its domestic demand. Thirdly, he added, the increased interest rates and other official monetary policies resulted in reduced availability of funds for enterprises.