There is still no Chinese growth momentum

John Robertson


There is still no Chinese growth momentum. The March reading for the official Chinese manufacturing purchasing managers index out yesterday again showed a sector hovering on the edge between contraction and expansion (with a reading of 50.3 compared with 50.2 the previous month). The most optimistic inference being drawn is that the lack of positive momentum in the Chinese economy might make policymakers there more likely to adopt economic stimulus measures to create some upside pressure in the second half of 2014. The updated chart shows deviations in the index from the baseline of 50 (the blue bars) and the S&P/ASX 300 resources index (the red line). Looked at as a sentiment indicator for Australian resources, the index suggests a still longer period in which equity prices have little upward impetus.

2 topics

John Robertson is Chief Investment Strategist for PortfolioDirect a provider of resource sector investment stock ratings and portfolio strategies for mining and oil and gas investors. He has worked as a policy economist, corporate business...


No areas of expertise

I would like to

Only to be used for sending genuine email enquiries to the Contributor. Livewire Markets Pty Ltd reserves its right to take any legal or other appropriate action in relation to misuse of this service.

Personal Information Collection Statement
Your personal information will be passed to the Contributor and/or its authorised service provider to assist the Contributor to contact you about your investment enquiry. They are required not to use your information for any other purpose. Our privacy policy explains how we store personal information and how you may access, correct or complain about the handling of personal information.