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China manufacturing grows for ninth month

0 CommentsPrint E-mail Xinhua, December 1, 2009
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China's manufacturing sector continued to grow for the ninth straight month in November, according to a survey by the China Federation of Logistics and Purchasing (CFLP) on Tuesday.

The Purchasing Managers' Index (PMI) of China's manufacturing sector stood at 55.2 percent in November, unchanged from the previous month, the CFLP said.

It was the ninth straight month 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.

Zhang Liqun, a researcher with the Development Research Center of the State Council, said the unchanged PMI index from the month before might suggest a stable recovery of China's economy.

He expected government investment would see gradual reduction, while investment from the private sector might increase. Exports would go up, but not in a drastic rise, he said.

In November, new order index and output index both held steady from figures in the previous month at 58.4 percent and 59.4 percent, respectively, according to the CFLP.

New export order index was 53.6 percent, down by 0.9 percentage points compared to November while purchasing price index rose by 6.5 percentage points to 63.4 percent.

Only three out of the 20 surveyed sectors reported a PMI index reading below 50, which were paper making and printing, oil processing, and beverages making.

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