July 10, 2009

China’s confidence measure rises

China's National Bureau of Statistics said confidence the Chinese economy jumped in the second quarter after sinking to an eight-year low in 2008.

The leading index measuring the country's confidence in the economy jumped from 101.1 in the first quarter to 110.2 in the second. In the final quarter of 2008, the index fell to 94.6.

There is little doubt that China's economy is now embarking on an upward trend and this is more evidence that China had bottomed out in the first quarter, economist Zhuang Jian at the Asian Development Bank said.

Billionaire investor George Soros said this week, China was on track to becoming, one of the motors of the world economy, China Daily reported Friday.

On Wednesday, the International Monetary Fund in Washington said China's economy would grow 7.5 percent in 2009 and 8.5 percent in 2010.

Economists are now concerned the government's stimulus spending will push too far.

As soon as China's consumer price index turns positive, the government should stop its lending spree, Zhuang said.