BEIJING (Xinhua) – China’s purchasing managers’ index (PMI) beat expectations to re-enter the expansion territory as the economy shows more signs of resilience and stability.
The PMI for China’s manufacturing sector firmed up to 50.2 in November from 49.3 in October, the National Bureau of Statistics (NBS) said last Saturday.
As the country takes firm steps in further stabilising the economy, market analysts believe that the above-expectation manufacturing PMI is yet another sign of China’s economic resilience. The improvement of the manufacturing PMI was broadly based, with rising sub-indices of production, new orders and raw materials inventory, said Lu Ting, chief China economist with Nomura, in a research note.
A report from Lianxun Securities echoed Lu’s point, saying the 50.2-reading of November PMI was significantly higher than the October figure of 49.3, which expanded over 50 for the first time since May. The institution attributed the rise of November PMI to production and new orders, which increased the figure by 0.45 and 0.51, respectively.
Growth drivers recovered with improvements in both the demand and supply side thanks to polices to sustain infrastructure development, relaxation of property investment regulations, and rising international demand, the report said.