Positive news about China’s manufacturing industry gave a boost to economies around the globe, Bloomberg reports:
Stocks rose in the U.S., extending a global rally, after the reports added to evidence that factories are powering a recovery from the worst recession since World War II. India beat economists’ forecasts on Nov. 30 with 7.9 percent growth in the third quarter, and South Korea said today its exports gained for the first time in 13 months.
Sales are rising at companies from Midland, Michigan-based Dow Chemical Co. to Gyeonggi, South Korea-based Samsung Electronics Co. after governments worldwide injected more than $2 trillion of stimulus since September 2008 and central banks slashed interest rates. Manufacturers are likely to keep assembly lines humming as they replenish depleted stockpiles, economists said.
“Most countries are pretty firmly in growth mode,” said Michael Feroli, an economist at JPMorgan Chase & Co. in New York. “A lot of the gains in manufacturing are coming from the resumption of global trade, and production is playing catch-up with demand. Inventories are lining up well for further production gains.”
