PEST Factor: Economic
*UPDATE to previous post:
This article states that China's manufacturing is recovering as their exports, industrial production, retail sales and fixed asset investment have all shown improvement and progress. According to the article, China's purchasing managers' index (PMI) has gone up to 50.6 in November, from 50.2 in October and 49.8 in September. A number above 50 on the PMI scale indicates expansion of the economy, which means that China is definitely recovering from the hard-hitting recession back in 2008. This also means that it is likely to increase market confidence in the Chinese economic outlook for the remainder of the year. The resumption of strong growth in China should improve consumer sentiments and spending. In the long run, the continued promotion of domestic consumption in China is a positive long term trend for Adidas which should benefit from higher sales.
Sources:
http://www.scmp.com/news/china/article/1094881/china-manufacturing-grows-second-month
http://www.investopedia.com/university/releases/napm.asp
*UPDATE to previous post:
This article states that China's manufacturing is recovering as their exports, industrial production, retail sales and fixed asset investment have all shown improvement and progress. According to the article, China's purchasing managers' index (PMI) has gone up to 50.6 in November, from 50.2 in October and 49.8 in September. A number above 50 on the PMI scale indicates expansion of the economy, which means that China is definitely recovering from the hard-hitting recession back in 2008. This also means that it is likely to increase market confidence in the Chinese economic outlook for the remainder of the year. The resumption of strong growth in China should improve consumer sentiments and spending. In the long run, the continued promotion of domestic consumption in China is a positive long term trend for Adidas which should benefit from higher sales.
Sources:
http://www.scmp.com/news/china/article/1094881/china-manufacturing-grows-second-month
http://www.investopedia.com/university/releases/napm.asp