Emerging Markets Analysis By Lloyds TSB

China’s PMI manufacturing survey for January is expected to show, on balance, a modest increase, rising to 54.5 from 53.9 in December. China’s PMI manufacturing survey for January is expected to show, on balance, a modest increase, rising to 54.5 from 53.9 in December. However, the sub-components are likely to show mixed results. Although, cold weather conditions are expected to result in a softening in manufacturing orders, notably domestic orders, we look for a solid rise in input prices in January, following the surprise moderation in December. If realised, this will support our view that consumer and producer prices will reaccelerate early this year.