A worker at a machinery manufacturing plant in Qingzhou, Shandong province, uses welding equipment. [Photo by Wang Jilin/For China Daily]
China's purchasing managers index for the manufacturing sector rose to 52.1 this month, the highest level of the year, indicating recovery in the sector is speeding, the National Bureau of Statistics said on Monday.
The PMI, a key barometer of the health of the nation's manufacturing sector, came in at 52.1 in November versus 51.4 a month earlier, with sub-gauges of production and new market orders improving to the best levels of the year, the NBS said.
A reading above 50 indicates expansion, while one below that reflects contraction.
"The internal (growth) impetus of the manufacturing sector has continuously risen with an improved circulation between supply and demand," said Zhao Qinghe, a senior NBS statistician.
Zhao added the sub-gauges of new export orders and imports also rose to the highest levels of the year in November, pointing to a sustained recovery in the nation's foreign trade.
Yet the recovery of the manufacturing sector was still unbalanced, as the PMI of the textile and clothing sector remained below the 50 mark, while some exporters reported the recent appreciation of the renminbi has put pressure on export orders.
In addition, non-manufacturing PMI rose to 56.4 in November. The composite PMI, covering manufacturing and non-manufacturing sectors, improved to 55.7. Both readings were at their highest for the year, indicating a steady recovery of the Chinese economy, the NBS said.
With the economy continuing to increase its pace of rebound, GDP growth for the fourth quarter of the year may rise to 5.9 percent year-on-year compared with the third quarter's 4.9 percent, according to a report from the China Macroeconomy Forum, an institution backed by the Renmin University of China.
The acceleration of the recovery in domestic demand may continue into the first quarter of 2021, the report alleged, as supply-side focused macro policy supports gradually penetrate the demand side.
Source: China Daily