China’s manufacturing grows in November; Chinese dragon is back

The China's PMI was 50.6 in November

The China's PMI was 50.6 in November

On the 1st of December, the National Bureau of Statistics released data on PMI in China which proves that the Chinese economy is showing signs of recovery. According the findings, the China’s PMI was 50.6 in November, up from 50.2 in October. Basically, the figures point out that the China’s economy is recovering after a slowdown.

China’s PMI

The Purchasing Managers Index, which is a key indicator of the economy, reached 50.6 in November, compared with 50.2 in October. The result was in the line with analysts’ estimates. It is worth underlying that the China’s PMI in November was the highest result in seven months, showing that the Chinese manufacturing sector is growing after months of contraction. It was the second consecutive month when China saw the manufacturing sector grow.

The November’s result was certainly the improvement, taking into consideration figures from last months. The increase was most seen in larger companies. However output in small and medium companies saw a decline.

Government investment is believed to have been mainly responsible for improved results. Analysts underline that the government of China launched many projects and the economy has started showing signs of that.

Certainly data on the China’s PMI reduces pressure on the new leadership to introduce more policies aimed at supporting a growth rebound. In addition, there is a visible growth in confidence in China’s economy as analysts and investors believe that Xi Jinping’s administration will improve the investment conditions.

According to analysts, the growth in China’s PMI was significantly driven by new orders. Therefore the output is expected to be further accelerated in next months.

Chinese dragon is back

Since September China has witnessed a significant improvement in its economic health as many indicators including factory output, retail sales and investment have been showing that the government’s pro-growth policies are effective. In addition, investments are expected to extend the recovery in 2012. Many analysts are convinced that the China’s economy has been getting over the longest slowdown since the global financial crisis and that it is ready to increase.  Moreover, analysts highlight that the China’s central bank has moved carefully in easing monetary policy to support the economic growth.

Li-Gang Liu, Chief Economist for Greater China at ANZ Banking Group, underlined that the China’s economy was growing, stating: “The official PMI figures confirm our view that an economic upturn has already taken place.”

The government of China  estimates this year’s growth to be 7 percent to 7.5. However, taking into consideration the strong economic results since September some analysts believe that China might see the growth of as much as 8 percent.

Yet many analysts also underline that China’s economy might face many challenges from external markets, including the European debt crisis and the unsteady economic situation of the United States as well.  Both the European Union and the United States are China’s biggest trade partners.

Avatar
Anna Domanska
Anna Domanska is an Industry Leaders Magazine author possessing wide-range of knowledge for Business News. She is an avid reader and writer of Business and CEO Magazines and a rigorous follower of Business Leaders.

Recent Posts

Babcock facing writedowns of £1.7 billion, plans to cut 1000 jobs

Babcock facing writedowns of £1.7 billion, plans to cut 1000 jobs

Babcock International Group PLC, the UK defense contractor, said that a comet review for the financial year ending March 21 had identified impairments and charges totaling approxim
9 hours ago
France’s water management utilities, Veolia and Suez, finally merge after long battle

France’s water management utilities, Veolia and Suez, finally merge after long battle

Veolia and arch-rival Suez, the two French waste management utility companies, have struck a deal worth nearly 13 billion euros ($15.44 billion)to merge after months of wrangling.
1 day ago
Impossible Foods mulling IPO at $10 billion valuation

Impossible Foods mulling IPO at $10 billion valuation

Impossible Foods, the makers of the widely popular plant-based burgers, plans to go public with a likely valuation of $10 billion. The vegan burger company was valued at $4 billion
1 day ago
Aramco sells minority stake to EIG Group-led consortium for $12.4 billion

Aramco sells minority stake to EIG Group-led consortium for $12.4 billion

Energy giant Saudi Aramco is selling a minority stake for 12.4-billion-dollar in a newly formed oil pipeline business to a consortium led by US-based EIG Global Energy Partners. Th
1 day ago
Elior acquires Nestor, the single meal food delivery startup

Elior acquires Nestor, the single meal food delivery startup

Elior, the corporate catering company, has acquired the French startup Nestor for an undisclosed amount. Nestor, a Paris, France-based food delivery service, started in 2015 with a
4 days ago
Axa gears to buy office space worth €800m in European cities

Axa gears to buy office space worth €800m in European cities

Axa Investment Managers, the French fund house, is not too worried about predictions that the post-pandemic world will see more people working from home and office real estates shr
5 days ago