Both official statistics and HSBC’s China Purchasing Manager’s Index indicate that manufacturing industry in China is on an upswing. MarketWatch reports on the HSBC numbers:
The headline PMI figure was the seventh straight month that the index has held above 50, the threshold marking whether the factory sector is expanding or shrinking.
The survey showed that “operating conditions in the sector improved at the most pronounced rate for 18 months,” HSBC said.
Export orders climbed to 55.6 from 54.4, the fifth straight month of gains, and the most robust pace seen since June 2007. Exports orders were particularly pronounced to North America, according to manufacturers’ comments compiled by the survey.
“The ongoing strong recovery in the manufacturing sector should gain further momentum in the coming months” said Hongbin Qu, chief economist for China at HSBC.
The China Federation of Logistics and Purchasing said its index rose to 55.2 from 54.3 a month earlier, the eighth straight monthly reading above 50, the threshold marking economic growth.
The index had dropped to 38.8 last November but moved back into positive territory in March this year.
The reading for new export orders rose to 54.5 from 53.3 in September, and imports, which had lagged the overall index in showing recovery, jumped to 52.8 from 50.7 a month earlier.
