Flash PMI report at 6-month high after orders rise
Factory activity in China and Europe signal economic healing but US figure disappoints
The mainland's factory sector grew at its fastest pace in six months this month, a preliminary survey showed yesterday, adding momentum to a tentative turnaround in the economy since the middle of the year.
The earliest reading of the economy's performance this month reinforced confidence the government could meet its growth target for this year.
The flash HSBC purchasing managers index (PMI) climbed to 51.2 from last month's 50.1, hitting a high not seen since March. Ten of the 11 sub-indices rose.
"Given the current growth momentum, the government should be able to achieve its 7.5 per cent growth target," said Lu Ting, an economist at Bank of America Merrill Lynch.
After cooling in 12 of the last 14 quarters, the economy finally looks to be stabilising, though some analysts are concerned the jump in activity is being fuelled by excess credit and investment.
Exports staged a promising comeback this month, the PMI showed, with new export orders jumping 3.6 points to a 10-month peak of 50.8. It was the first time in six months that export orders were above 50 points, the level that indicates expansion.
Domestic demand also showed resilience, with new orders rising to a five-month high.