Monday, June 30, 2014
CHINA ASIA-PACIFIC PURCHASING MANAGERS INDEX
Asia-Pacific Rises Amidst
Healthy China PMI
Source: Asian Development Bank
Source: Frugal Dad
As Asia’s largest economy and the world’s second largest economy, events in China can have a major impact on economies across the globe.
Indeed, China’s May PMI reading of a healthy 50.8 may already be buoying economies across the Asia Pacific.
Singapore enjoyed a solid growth in the first quarter. Growth weighed in at 4.9 per cent (YOY) for the quarter. Manufacturing led the way,
expanding by 11.9 per cent. High-end Singaporean components are often used in China to manufacture finished goods, so this could suggest that
China’s economy is indeed growing again.
Meanwhile, Indonesia is seeing its currency markets stabilise after months of turbulence due to sequestering in the US. Bank Indonesia’s survey
showed that consumers are increasingly confident in the country’s prospects. It recorded a rating of 116.9, up from a previous reading of 113.9.
Any reading above 100 suggests overall confidence.
During the last decades, many Asian economies attained high
manufacturing output shares for a sustained period, 25%-35%
of GDP, on par or even higher than the shares attained by
OECD countries during the 1960s and 1970s.
FAC TORY ASIA
If manufacturing shares
in both GDP and total
employment are at
Using a sample of 109 economies, ADB has found that almost
no economy has become high income without manufacturing
output and employment shares reaching 18% or above
sector is small
MANUFAC TURING EMPLOYMENT SHARES
BECOMING A HIGH-INCOME ECONOMY PROBABILITY OF BECOMING A HIGH-INCOME ECONOMY
Japan, the newly
and Malaysia at peak