Beijing, China (4E) – Manufacturing activity in China rose to its fastest pace in 13 months in November, according to a survey by HSBC and another indication that the world’s second largest economy could be emerging from a minor slump.
China’s HSBC purchasing managers’ index (PMI) stood at 50.5 in November, an uptick from previous month’s 49.5. A reading above the 50 mark signals growth while reading below 50 indicates contraction.
In an economy where manufacturing is the main driver of growth, China has recently seen its economic development lose momentum. The booming growth of the previous years has reached a three-year low in the quarter ending September this year.
Recent findings have boosted economic outlook reinforcing optimism that the worst is over for the Chinese economy. Signs of improvements have been seen in industrial production, retail sales, exports and fixed asset investment, which is an important measure for infrastructure spending.
Recent statements from Premier Wen Jiabao and Commerce Minister Chen Deming show that China is set to achieve its 7.5 per cent growth rate target for 2012 despite the impact of the global economic slowdown.
PMI reading from the government also showed an increase in November registering a 50.6 reading, up from October’s 50.2 and September’s 49.8.
The HSBC index, a closely followed barometer of the economy’s health, uses data from information services provider Markit which tracks manufacturing activity.