China's manufacturing activity rose to a seven-month high in November on improved new orders and production, mirroring signs of stabilization in the second-largest economy.
The Purchasing Managers' Index rose to 50.6 from 50.2 in October, official survey jointly issued by the China Federation of Logistics and Purchasing and the National Bureau of Statistics showed Saturday. The sector expanded for the second straight month. Economists were looking for a figure of 50.8.
The new order index gained 0.8 points to 51.2 and the production index climbed 0.4 points to 52.5. The new export orders index climbed to 50.2 from 49.3. Meanwhile, the input price index fell sharply to 50.1 from 54.3, reflecting easing price pressures in the economy.
CFLP analyst Zhang Liqun said economic growth will maintain a moderate rebound. Destocking activity started to shift to restocking, indicating that industrial production will continue to improve, the analyst pointed out.
Official data showed that both industrial production and exports picked up in October.
Preliminary survey data from Markit Economics revealed an expansion in manufacturing for the first time in thirteen months, driven by a rebound in output and export orders. The headline PMI rose to 50.4 in November.
Purchasing Managers' survey results eased pressure on the new leadership to formulate measures to take the economy back on upward trajectory.
Moreover, the Conference Board said its leading indicator for China rose at a faster pace in October, suggesting that a moderate rebound is underway that may carry into the first half of 2013.
Rating agency Standard & Poor's this week affirmed China's sovereign ratings and stable outlook citing the country's strong economic growth potential, robust external position, and the government's relatively healthy fiscal position.
In the third quarter, China's growth was the weakest since the first quarter of 2009. GDP expanded 7.4 percent.
by RTT Staff Writer
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