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BIZCHINA> Top Biz News
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China's economic recovery isn't firm, rsearcher says
(Agencies)
Updated: 2009-07-07 15:37 China's economic recovery "isn't firm" and the nation needs to promote domestic consumption to make up for weak global demand, a government researcher said.
China has to boost domestic consumption by increasing household income and not just through gains from property and stocks, he said. The central bank should send a signal for stable money supply in the second half or "early next year" to guard against the risks of asset-price inflation, Xia said. The People's Bank of China scrapped lending quotas in November and has kept interest rates at a four-year low, triggering an explosion in credit to support Premier Wen Jiabao's 4 trillion yuan ($585 billion) stimulus package. Manufacturing in the world's third-largest economy expanded for a fourth month in June. The official Purchasing Managers' Index rose to a seasonally adjusted 53.2 from 53.1 in May, the Federation of Logistics and Purchasing said July 1. A reading above 50 indicates an expansion. (For more biz stories, please visit Industries)
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