The China’s SMEI current performance index rebounded to 58.0 in March from 52.8 in February. Importantly, nearly all performance indicators improved.The key sub-indices for production and new orders strengthened to 61.2 and 64.2 in March, respectively, from 54.4 and 54.1 in February. This suggests a rebound in real activity during the month. The latest survey points to a pick-up in production after the Lunar New Year holidays, though it is still below Q3-2014 levels.”New orders, however, rose to the highest level since our survey started in May 2014. This bodes well for production in the coming months,” says Standard Chartered.The two forward-looking sub-indices, investment and raw-material inventories, also improved in March. The investment sub-index edged up to 55.6 from 53.3, and the raw-materials inventories sub-index rose 7.5 points to a record high of 58.2. This suggests that manufacturers are starting to restock in anticipation of rising business activity in the coming months.Labour-market conditions have improved, albeit marginally. The employment subindex rose to 54.4 in March from a low of 50.0 in February. This suggests that hiring has picked up after the holiday season, but the labour market remains generally soft. The salary sub-index moderated to 63.8 in March from a record high of 66.9 in February; this provides little comfort for SMEs, as labour costs remain high. On the positive side, the employment expectations sub-index rose significantly in March, indicating an increase in hiring demand in the near future.
The material has been provided by InstaForex Company – www.instaforex.com