Manufacturing in China grows for first time in three months
01 Nov 2012
Manufacturing in China grew for the first time in three months with output and new orders rising, signalling a growth pick up in the world's second-biggest economy, following a seven-quarter slowdown.
The Purchasing Managers' Index inched up to 50.2 in October from 49.8 in September, according to the National Bureau of Statistics and China Federation of Logistics and Purchasing. HSBC Holdings Plc and Markit Economics conducted a separate survey which stood at eight-month high.
Shanghai's benchmark stock index surged the most in three weeks as the reports corroborated evidence of a pickup in expansion this quarter following industrial production, exports and retail sales accelerating in September.
According to analysts, the data is likely add to pressure on outgoing premier Wen Jiabao to introduce additional stimulus measures during a once-a-decade power handover that begins with a Communist Party congress next week.
China's economy registered 7.4 per cent growth in the third quarter from a year earlier, the slowest pace in three years. Bank of America Corp in Hong Kong, this week raised its estimate for fourth-quarter growth to 7.8 per cent from 7.5 per cent while Nomura Holdings Inc projects and 8.4 per cent rebound.
Surveys of manufacturing purchasing managers across Asia released today by HSBC and Markit Economics also showed improvement, pointing to the strong possibility of the worst of the declines in the region's economies moderating.
