FLGS – Global Finance Report

BEIJING – The production companies in Asia in December last year increased significantly marked the fastest growth reached record highs in China.

European manufacturers are also gaining momentum in the last months of 2009 despite the increase was not as fast as in Asia. The condition is increasingly showing the uniformity of growth in Asia in leading the economic recovery of the global crisis. In China, shopping index manager (purchasing managers index / PMI) in December 2009 which shows the company’s activities rose to 56.1 points from 55.7 points the previous month. The index was the highest since the survey conducted by HSBC in April 2004.Dalam PMI measurements, an index below 50 means economic contraction and above 50 indicates expansion.

In India, manufacturing activity also reached record highs in the last seven months to 55.6 points from the first 53 points in November. Similarly in South Korea (Korea) who registered an increase in PMI becomes 52.84, the highest since August last year. In comparison, South Korea PIM in November 2009 only 52.84 points. “China’s manufacturing index will continue to improve in the coming months as rising exports, the return of foreign investment that encourage public investment,” said economist of Bank of America-Merrill Lynch Lu Ting yesterday.

Asian manufacturing performance can not be separated from the role of the government stimulus package that poured in particular China’s largest fund of USD585 billion to boost lead perekonomiannya.Tak wonder if global economic growth followed by India which also recorded significant growth during the crisis. Manufacturing of other Asian countries continue to grow is the Japanese for the first time in three months to record the results and positif.Menurut Nomura JMMA survey, the increase was driven increased exports to China so that spur increased production of the company.

Increased output in India and South Korea rated as one of the momentum for the emergence of opportunities to an increase interest rates, following Australia. Central Bank of India has even scheduled a meeting to discuss interest rates on January 29 next. “South Korean Central Bank could also keep its benchmark interest rate this week, but we think they’ll change the policy interest rates before the end of the quarter,” said HSBC’s senior economist for Asia, Frederic Neumann.

Still, some analysts said that the advantages of industrial production could put pressure on the rate of inflation. These conditions will make the government to curb the growth of the circulation of money to keep the inflation rate. “However, we believe inflation will be arranged in the coming months,” said HSBC economist Qu Hongboin. Comments are referring to the statement that the Government of China pledged to take a more flexible policy this year with respect to market conditions. In the EU region, PMI index through the highest level in 21 months in December.

Survey Markit Economics said yesterday, PMI for companies in the European zone rose 51.6 compared to November. Similarly, in England, where the growth of its PMI rose to 54.1 points, better than November that only 51.8 points. “End of December to inform you that manufacturing in the European zone with a positive ending,” said senior economist Rob Dobson Markit quoted as saying by the Wall Street Journalkemarin.

According to Markit, although layoffs in the industry continues, the amount estimated to decrease about 15 percent.