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Rise in PMI may show economy stabilizing

By Wang Xu (chinadaily.com.cn)
Updated: 2009-03-02 14:31

CLSA's China Purchasing Manager's Index (PMI) rose to 45.1 in February, up from 42.2 in January, the company said in a report released this morning. PMI is a major indicator of economic health and a reading below 50 shows the industrial is contracting.

Although the PMI figures have remained below 50 for seven months, the February reading represents the third monthly improvement since November.

Jing Ulrich, managing director and chairman of JP Morgan's China Equities, said the PMI could be the latest sign of economic stabilization. But whether this uptrend is sustainable is still questionable, he said.