1 China manufacturing picks
up pace (Straits Times) Activity in China's manufacturing sector unexpectedly
expanded at the fastest pace in nearly five years in March, adding to evidence
that the world's second- largest economy has gained momentum early this year.
The official Purchasing
Managers' Index (PMI) rose to 51.8 in March from the previous month's 51.6,
well above the 50-point mark that separates growth from contraction on a
monthly basis. Non-manufacturing PMI rose to a two-year high of 55.1 from 54.2
in February, the National Bureau of Statistics (NBS) said.
The new strength
follows a factory rebound since mid-2016, while industrial output and private
investment also have picked up. Still, the brighter picture has been boosted by
surging producer prices that may be close to peaking, and the government will
have to deal with the hangover of the investment- driven growth.
China has reported a
slew of upbeat data so far this year, even as Beijing tries to rein in
speculative bubbles in the red-hot property market and control risks in the
broader financial market from years of debt-fuelled stimulus.
A surprise rebound in
home sales and stronger infrastructure investment have added fresh impetus to a
months-long construction boom that has lifted demand for building materials
from cement to steel and helped reflate prices of industrial commodities
worldwide.
2 UK household savings at record low (Angela
Monaghan in The Guardian) British households ran down their savings to a record
low at the end of 2016, raising fears that the UK is on course for a fresh
consumer debt crisis in the wake of the Brexit vote.
The saving ratio – which estimates the amount of
money households have available to save as a percentage of their total
disposable income – fell sharply in the fourth quarter last year to 3.3% from
5.3% in the third.
It was the lowest since records began in 1963,
according to the Office for National Statistics (ONS), and suggested that
people are increasingly dipping into their savings to maintain spending at a
time when prices are rising. A fall in disposable incomes over the fourth
quarter also raised concerns that people will increasingly rely on debt-fuelled
spending as a squeeze in living standards takes hold.
The Bank of England said rapid growth in consumer
credit, underpinned by an acceleration in credit card borrowing, was one of the
main threats to the UK banking system. Real household disposable income, which
adjusts for inflation, shrank by 0.4% compared with the previous three months,
the steepest drop in nearly three years.
3 Schools urged to teach problem solving (Judith
Burns on BBC) Schools should focus less on "subjects" and more on
teaching problem solving skills, say engineers in a report. A focus on
"playful experimentation" could boost learning throughout UK schools,
says the Royal Academy of Engineering. It could also instil a passion for
engineering and help "overcome our current lack of engineers", it
adds.
Co-author Prof Bill Lucas, of Winchester University,
said schools "must rethink" the way they teach in order to boost
engagement in engineering. Dr Rhys Morgan, director of engineering and
education at the Royal Academy of Engineering, said the UK's shortage of
skilled engineers was well recognised and that the report's proposals to
"fundamentally reframe" the curriculum would help meet the challenges
of raising skill levels in the UK.
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