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

least 18%

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



If manufacturing

sector is small

25%-35%

OF GDP


MANUFAC TURING EMPLOYMENT SHARES

BECOMING A HIGH-INCOME ECONOMY PROBABILITY OF BECOMING A HIGH-INCOME ECONOMY


Japan, the newly

industrialised economies,

and Malaysia at peak

industrialisation

25%

to

30%


Most other

Asian economies

today

10%

to

15%

18% 41%