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.

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

Should you sit out on the Rivian IPO?

Should you sit out on the Rivian IPO?

Amazon-backed EV maker Rivian has filed for its initial public offering. We find out if the Rivian IPO is worth the price or simply the next internet bubble.
1 day ago
Bitcoin vs Gold: Here’s what experts have to say

Bitcoin vs Gold: Here’s what experts have to say

Many say that Bitcoin is the digital version of gold. While gold, like the dollar, is an outdated investment vehicle. We turned to experts to settle the bitcoin vs gold debate.
2 days ago
Best Pharma Stocks to Buy Right Now

Best Pharma Stocks to Buy Right Now

Industry Leaders has curated a brief list of the best pharmaceutical stocks you can buy right now, along with a list of pharma penny stocks that have the best potential to grow in
3 days ago
Why Is Squid Game So Popular?

Why Is Squid Game So Popular?

The Squid Game segments were watched by at least 132 million people in the first 23 days of the show on Netflix. Know what excited the viewers.
4 days ago
Amazon under Congressional scrutiny for pushing own products over others

Amazon under Congressional scrutiny for pushing own products over others

US judiciary Antitrust Committee writes a letter saying that Amazon is given time till November 1 to prove that it utilizes seller data available to create competing products and p
5 days ago
Porsche’s Taycan EV outsells ICE powered its 911 sports car

Porsche’s Taycan EV outsells ICE powered its 911 sports car

The Porsche Taycan EV has outsold the Porsche 911 sports car for the first time since it was introduced in 2019 by the German automaker.
6 days ago