Manufacturing activity in China and much of Asia continued to expand in March, underlining the region’s role as an engine of the global economic recovery.
The regional manufacturing growth – coupled with a surge in crude oil prices to their highest level in 17 months – suggests that inflation could again become a problem. That could prompt Asian governments and central banks to ease back on their fiscal and monetary stimulus that has helped pull the region out of last year’s slump, with implications for the global economy.
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(Source: The Wall Street Journal Online)