Nov. 23, 2012 (China Knowledge) - The preliminary HSBC China manufacturing purchasing managers' index (PMI), a preliminary gauge of China's manufacturing sector, increased to 50.4 in November this year, 0.9 points higher than the final reading of 49.5 in October, according to data released by HSBC Holdings PLC<0005
This is the first time HSBC China PMI rebounds to over 50 since thirteen months.
The reading stayed below 50 for the eighth consecutive month. A reading below 50 indicates contraction from the previous month, while a reading above 50 suggests expansion.
Qu Hongbin, Chief Economist for HSBC China, the rebound in the preliminary PMI indicates the economy continue to recover and the growth momentum has increased at the end of the year.
In November, the new order index hit 50.2, while the new export order index rose to 52.4 last month.
Meanwhile, the product inventory index rose to 49.5 last month from 48.4 in October.