Dec 14, 2012
Translated by Zhu Na

The economic health of China’s manufacturing sector hit its highest point in 14 months in December, according to data released by HSBC on Dec 14.

The initial value of China's manufacturing Purchasing Managers' Index (PMI) was 50.9 in December, up slightly from 50.5 in November. However, China’s manufacturing output was the lowest in two months at 50.5, down from 51.3 in November. In both cases, a number over 50 indicates that growth is accelerating while a number under 50 means it’s slowing.

A breakdown of the data shows that output in December expanded, albeit at a slower pace, while new orders expanded at an accelerated pace. However, new export orders shrank. 

Xu Wubin (屈宏斌), chief economist with HSBC China, said that the PMI signals an economic recovery with domestic demand improving. However, the decrease in new export orders and the retreat of export growth in November means that overseas demand remains weak. Since inflation is mild and controllable at present, certain policies should be relaxed to offset the negative impact of this weak overseas demand.

Customs announced earlier this month that China’s export growth in November was down to 2.9 percent - significantly lower than market expectations. 

Links and Sources
China Securities Journal - 匯豐12月中國制造業(yè)PMI初值為50.9 創(chuàng)14個(gè)月新高