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Industry growth brightens outlook

Updated: 2012-12-02 07:55
By Hu Yuanyuan ( China Daily)

China's manufacturing picked up for the third straight month in November, official data showed on Saturday, pointing to further recovery of the world's second largest economy.

The purchasing managers' index rose to 50.6 in November from 50.2 in October, reaching a seven-month high, according to China Federation of Logistics and Purchasing.

The PMI rebounded to 49.8 percent in September, ending four straight months of decline. A reading above 50 indicates an economic expansion.

"Though the November PMI is a bit lower than the market expectation of 50.8, it remained above 50 and has risen for three months in a row, demonstrating that the country's real economy and financial market is improving," said Zhou Hao, an economist at ANZ Banking Group Ltd.

Readings for sub-indices also indicated an expansion. The sub-index for new orders climbed 0.8 percent from October to 51.2 last month. The export order sub-index for November stood at 50.2, up 0.9 percent from the previous month, CFLP statistics show.

For Zhang Liqun, an analyst with the Development Research Center of the State Council, increases of new orders and improvements in some PMI sub-indices mean companies have finished cutting inventories, which points to further expansion in coming months.

HSBC China's flash PMI, which prefers samples from small and medium-sized enterprises, bounced back into expansion territory for the first time in 13 months to stand at 50.4 in November.

Related readings:

China's Nov PMI seen hitting 7-month high

Flash PMI flags steady recovery, policy continuity

Related specials:

China Economy by Numbers - Oct

China Economy by Numbers - Sept

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