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China's PMI of manufacturing sector up to 55.2% in Oct.

0 CommentsPrint E-mail Xinhua, November 1, 2009
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The Purchasing Managers' Index (PMI) of China's manufacturing sector rose to 55.2 percent in October, up 0.9 percentage points from the previous month, the China Federation of Logistics and Purchasing (CFLP) said on Sunday.

The index was 0.6 percentage points higher than the number in September, when the PMI edged up only 0.3 percentage points to 54.3 percent. It was the eighth month in a row that the PMI reading stayed above 50.

A reading of above 50 suggests expansion, while one below 50 indicates contraction. The PMI includes a package of indices that measure economic performance.

The survey, conducted by the National Bureau of Statistics (NBS), covers purchasing and supply managers in more than 700 firms across China. The CFLP launched the PMI in 2005.

The production index in the PMI reached 59.3 percent in October, the highest level since last May.

October's new export index rose to 54.5 percent, up 1.2 percentage points from the previous month.

The import index last month jumped 2.1 percentage points to 52.8 percent, the record monthly high since last April.

Nineteen out of the 20 surveyed sectors reported a PMI index above 50 percent last month.

Zhang Liqun, a researcher with the Development Research Center of the State Council, said the continuous rise of the PMI reading last month was a reflection of the fact that China's economy was on an upward track.

The fast increase of the import index indicated that China's domestic demand was expanding fast, he said. The export index also rose, which meant China's exports were continuing to increase.

"These figures mean that China's economic growth will continue to accelerate in the next few months. Growth of the gross domestic product (GDP) is expected to reach around 9.5 percent in the fourth quarter this year," he added.

The manufacturing-based Chinese economy expanded 8.9 percent year on year in the third quarter of this year, and 7.7 percent year on year in the first nine months, the NBS said last month.

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