HSBC China flash PMI at 13-month high
STEADY THROUGH YEAR-END
This month's PMI reading above 50 is likely to be seen as a turning point by the market, particularly if it is born out by the final reading due on Dec. 1 and by official indicators.Asian shares extended gains slightly after the data to stand up nearly 1 percent on the day and the Australian dollar, sensitive to demand from the biggest customer for Australia's resources, rose as far as $1.04.
"This confirms that the economic recovery continues to gain momentum towards the year-end,"
Qu Hongbin, chief China economist at index sponsor HSBC, said in a statement accompanying the data. "However, it is still the early stage of recovery and global economic growth remains fragile. This calls for a continuation of policy easing to strengthen the recovery."
With a one-month exception in October 2011, the HSBC PMI – which largely reflects the private manufacturing sector – has remained stubbornly below the 50-point level separating accelerating from slowing growth since June 2011.
Unlike the patchy results seen in previous months, in November almost all the sub- indices in the HSBC survey concurred in showing an improving economy.
The one exception was a fall in the sub-index measuring output prices, demonstrating that manufacturers are still struggling with overcapacity and relatively weak domestic demand. That could also reflect the weight in the survey of exporting firms, which have less ability to raise sales prices, said Standard Chartered's Li.Indeed, China's
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