China's manufacturing sector has continued to maintain a 13-month expansion in more than 50%

China's overall manufacturing sector in Marchbe underestimated.
continued growth. April 1, China Federation of    While in March the new export orders index
Logistics and Procurement (hereinafter referred torose, reaching 54.5%, but it does not mean that
as the Mining Union) jointly released data showfuture exports will steadily rise. Volatile
that in March 2010, the National Manufacturingmovements of the index. Monthly increase in
Purchasing Managers Index (PMI) was 55.1%, 3.1sporadic factors may be affected by the spot, so
percentage points higher than in February, whichdo not necessarily have the trend. In addition, the
The index is maintained for 13 consecutiveinternational environment, for China trade friction
months of above 50%.with the growing trend.
    On the same day, the bank has announced    In addition, the purchase price index from
in March China's manufacturing purchasingthe point of view, since November 2009 has been
managers index (PMI), than in February rose 1.2maintained for 5 consecutive months above 60%
percentage points to 57.0%, approaching a recordhigh, see also significantly increased recently. In
high.March to 65.1%, higher than in February rose by
    In alliance with PMI's five sub-indicators,4.0 percentage points.
production index and the new orders index was    In alliance with the view that price
58.4% and 58.1%, higher than in February rose bypressures still continue to rise. First, raw materials,
4.1 percentage points and 4.4 percentage points,higher energy prices pressure. February raw
becoming the main driving force to promotematerials, fuel and power purchase prices rose
higher PMI.10.3%, or more than 2.3 percentage points in
    Production index for 14 months placedJanuary to expand; Secondly, the five provinces
above the critical point, indicating that rapid growthof Southwest drought continues to spread,
of the manufacturing sector production, corporateShanghai, Chongqing and other places has been a
production chain increased steadily. In addition, inpartial phenomenon of food prices.
March nearly 90% of the surveyed enterprises    Instability if the prices will bring a new
believe that the number of product ordersinflation pressure; Moreover, with the weakening
increased or unchanged compared with February,of the global financial crisis, the international crude
the number of new orders showed substantialoil, metals, iron ore and other commodity prices
growth in the manufacturing sector, the marketbegan to rebound from the low re-enter the
demand increases.uplink channel, China faces Imported inflation is
    In alliance with the view that in March PMIalso rising.
shows the price pressure on exports and still not