adminThe preliminary purchasing managers’ index released by the British banking giant hit 50,4 this month, up from a final 49,5 in October, after 12 consecutive months in negative territory. A reading above 50 indicates growth in the key sector, while one below signals contraction.
The index, compiled by information services provider Markit and released by HSBC, tracks manufacturing activity and is a closely watched barometer of the health of the economy. November’s figure was the first time since October 2011 that the indicator showed expansion and suggested a revving up in China’s economy, where growth has slowed for seven straight quarters.
It comes after China’s official purchasing managers’ index rose, announced earlier this month, rose to 50,2 in October from 49,8 in September for the first expansion in three months.
“This confirms that the economic recovery continues to gain momentum towards the year end,” Qu Hongbin, HSBC’s chief economist for China, said in the bank’s release announcing the figure.
“However, it is still the early stage of recovery and global economic growth remains fragile. This calls for a continuation of policy easing to strengthen the recovery.”
China’s economic growth hit a more than three-year low of 7,4 percent in the three months to September, but recent data has fuelled optimism that the worst is over.
Exports, industrial production, retail sales and fixed asset investment — a key gauge of infrastructure spending — have all shown improvement.
The rosier outlook comes as China concluded an overhaul of the Communist Party’s top leadership last week. — AFP.
Online Reporter