Share

China manufacturing expands in November

Beijing - Manufacturing activity in China hit a 13-month high in November, HSBC said on Monday, in another sign that the world's second largest economy is emerging from a drawn-out slumber.

The banking giant's purchasing managers' index (PMI) hit 50.5 last month, up from 49.5 in October, putting it above the 50 mark that indicates growth. A reading below signals contraction.

The figure signals a return to growth after 12 consecutive months of contraction as the crucial sector has been hit by a global slowdown and the debt crisis in key market Europe, where demand for Chinese goods has slumped.

China's official PMI reading also showed expansion in November for the second month in a row, hitting 50.6 last month, from 50.2 in October and 49.8 in September.

Despite the news Shanghai's composite index slipped, trading 0.28% lower in early trade.

The HSBC index, compiled by information services provider Markit, tracks manufacturing activity and is a closely watched barometer of the health of the economy.

Qu Hongbin, a Hong Kong-based economist with HSBC, said the figure was helped by increasing new business and expanding production. "This confirms the Chinese economy continues to recover gradually," he said.

The bank expects China's economic growth to pick up modestly to around eight percent in the fourth quarter "as the easing measures continue to filter through", he added.

Economic growth hit a more than three-year low of 7.4% in the third quarter from July 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.

Premier Wen Jiabao and Commerce Minister Chen Deming have both said in recent months that they expect China to achieve its targeted 2012 growth rate of 7.5% despite the impact of the global slowdown.

We live in a world where facts and fiction get blurred
Who we choose to trust can have a profound impact on our lives. Join thousands of devoted South Africans who look to News24 to bring them news they can trust every day. As we celebrate 25 years, become a News24 subscriber as we strive to keep you informed, inspired and empowered.
Join News24 today
heading
description
username
Show Comments ()
Rand - Dollar
18.94
-0.2%
Rand - Pound
23.91
-0.1%
Rand - Euro
20.43
+0.2%
Rand - Aus dollar
12.34
+0.1%
Rand - Yen
0.13
-0.2%
Platinum
910.50
+1.5%
Palladium
1,011.50
+1.0%
Gold
2,221.35
+1.2%
Silver
24.87
+0.9%
Brent Crude
86.09
-0.2%
Top 40
68,346
+1.0%
All Share
74,536
+0.8%
Resource 10
57,251
+2.8%
Industrial 25
103,936
+0.6%
Financial 15
16,502
-0.1%
All JSE data delayed by at least 15 minutes Iress logo
Company Snapshot
Editorial feedback and complaints

Contact the public editor with feedback for our journalists, complaints, queries or suggestions about articles on News24.

LEARN MORE
Government tenders

Find public sector tender opportunities in South Africa here.

Government tenders
This portal provides access to information on all tenders made by all public sector organisations in all spheres of government.
Browse tenders