Tuesday 05, September 2017 by William Mullally

Unexpectedly positive figures from China

Mihir Kapadia, CEO and Founder, Sun Global Investments

MThe unexpectedly strong manufacturing figures from China have provided some positive boost to markets. With a PMI index of 51.7 in August, up from 51.4 in July, the news has led to a second consecutive day of boost in confidence, further to strong Q2 growth and jobs figures in the US. This is a welcome respite from over two weeks of North Korean aggression dominating the global markets.

Data from China continues to show the resilience of the economy and fears form about a year ago of a sharp slowdown in the rate of economic growth seem to have disappeared. The official manufacturing purchasing managers' index rebounded to 51.7 in August from July's 51.4. The index has been above the key 50 mark for an impressive 13 months. The official nonmanufacturing PMI fell to 53.4 in August from 54.5 in July as slower growth in Chinese property investment curbed construction activity. This suggests the government measures to tackle the bubble in property in beginning to have some impact.

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