China's PMI hits 4-year high in April

China's economy gathered strength in April despite deepening global gloom, with brokerage CLSA's Purchasing Managers' Index rising…

China's economy gathered strength in April despite deepening global gloom, with brokerage CLSA's
Purchasing Managers' Index rising to a four-year high of 55.4 from 54.4 in March.

Output and new orders grew at the fastest pace in six months; firms hired staff at the briskest clip since September; and inflation dipped from March's survey-record highs.

The index, which is seasonally adjusted, is designed to give a timely snapshot of business conditions in the manufacturing sector.

A figure above 50 indicates expansion, while one below 50 shows contraction. The Chinese government's PMI for April, released last night, rose to 59.2 from 58.4 in March.

Over a third of those surveyed raised prices.

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Firms said they were paying more for a range of inputs, including energy, steel, iron ore and chemicals. With supply shortages driving up global commodity prices, input costs have risen for 27 months in a row.