China's Economy Shows Signs of Recovery

• The latest manufacturing data in China suggest that the world's third-largest economy is showing some signs of recovery. Government economists announced Wednesday that manufacturing shrank again in January, but not as much as in the previous months.
• The state-sanctioned China Federation of Logistics and Purchasing says the country's purchasing managers index rose to 45.3, up from 41.2 in December.
• A PMI reading above 50 indicates growth, while a number below 50 indicates contraction.
• The data also show that demand for Chinese products declined at a slower rate in January than in December.
• China's state media also reported Wednesday that Chinese banks loaned a monthly record of $175 billion in January.
• The global economic slump has hit Chinese manufacturers as international demand for Chinese textiles, toys and other goods declined and real estate, auto sales and other sectors declined domestically.
• The government said earlier this week that an estimated 20 million domestic migrant workers have lost their jobs.
• The government in November unveiled a $600 billion stimulus package aimed at boosting demand through bigger spending and easier credit.

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