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China Daily Website

October PMI 'signals growth momentum'

Updated: 2013-11-01 23:16
By CHEN JIA ( China Daily)

A separate survey by HSBC Holdings Plc, which is more focused on small companies, yielded a manufacturing PMI of 50.9 in October, up from 50.2 in September. That was the strongest improvement for manufacturers' operating conditions in seven months.

"China is on track for a gradual growth recovery," said Qu Hongbin, chief economist in China at HSBC.

He said that the momentum for manufacturing growth in October led to the first expansion of employment since March, which in turn should support private consumption growth in the coming months.

Chen Gufei, an analyst at the financial research center of Bank of Communications, noted signs that industrial enterprises' investment plans are expanding. Production is also likely to continue expanding, Chen said.

"In the coming months, production by domestic manufacturers will maintain steady growth," he said.

However, Chen expressed concern about the moderate growth in new export orders, which might suggest weaker external demand in the fourth quarter.

The steady expansion of industrial output since July has supported the world's second-largest economy, with GDP growth rebounding to 7.8 percent in the third quarter from 7.5 percent in the second quarter and 7.7 percent in the first.

The government maintained a proactive fiscal policy and prudent monetary policy even when the pressure on economic growth increased in the first half.

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