| China Manufacturing rises at fastest pace since May |
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| Tuesday, 01 November 2011 10:26 |
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The China HSBC Manufacturing PMI for the month of October signalled a stronger expansion, as the overall new business rose for the first time in three months. The Manufacturing production increased for the third successive month during October, with the pace of growth reaching a five month high.
The Manufacturing PMI was registered at 50.1 in October from 49.9 in September, signalling an improvement in operating conditions for the first time since June. The long term average for the index stands at 52.1 and the current level indicates a modest growth in the manufacturing sector. Key observations are as under
Commenting on the China Manufacturing PMI™ survey, Hongbin Qu, Chief Economist, China & Co-Head of Asian Economic Research at HSBC said: “The final PMI confirms the notable improvement in China’s manufacturing activities driven by rising new business from both domestic and external markets. Despite the slight up tick in output prices growth, inflation is on track for easing. This provides leeway for Beijing to fine-tune policy to strike a better balance between growth and inflation priorities. We expect stable monetary policy with targeted easing in the coming months.”
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