China considering new stimulus - report

Source: China Daily | 02-03-2009 10:57

China is considering new steps to boost cooling growth, Premier Wen Jiabao said in comments published Monday, as new data showed manufacturing shrinking further.

Chinese Premier Wen Jiabao arrives to deliver a speech at  the University of Cambridge, eastern England February 2, 2009.  [Agencies]

"We may take further new, timely and decisive measures. All these measures have to be taken pre-emptively before an economic retreat," The Financial Times quoted the Chinese premier as saying in an interview in London.

The report gave no details of possible new steps. The government is rolling out a 4 trillion yuan ($586 billion) package unveiled in November in hopes of shielding China from the global crisis through heavy spending on public works projects.

Wen said last month there were signs the stimulus was having an effect. However the latest data suggest the country's economy faces other pain, including a government report Monday that some 20 million workers have lost their jobs due to the global crisis.

Also Monday, brokerage CLSA said its purchasing managers index, based on a survey of some 400 companies, showed manufacturing shrank in January for a sixth month. The PMI stood at 42.2 on a 100-point index where numbers below 50 show activity contracting. That was up from December's 41.2 but the third-worst month on record.