China’s PMI Index grows in october

November, 2013

The positive signals coming from the Chinese economy are continuing. Thanks to the recovery of orders, especially as exports from abroad, the index for manufacturing activity in the country rises above the equilibrium level.

The Chinese manufacturing sector has experienced a particularly strong growth in October, witnessing the encouraging results already achieved in previous months. It reveals the value of the index Markit - HSBC flash PMI , rising for the third month in a row, stood at 50.9 points, higher than the threshold of balance of 50. An index value of 50 points is the difference between growth and contraction in manufacturing activity: therefore, the survey referred to the month of October shows that the Chinese economy is gradually returning to the growth path . This ratio can also be taken as a reliable proxy of the dynamics of the country's gross domestic product, for which the increase recorded in September seems to suggest that China's economic growth can resume towards more favorable results compared to the expected level of 7.5% . This trend is in line with the figures released by the National Bureau of Statistics of China.
“China’s undergoing economic restructuring, which sometimes is not in lockstep with growth. We need to sacrifice short-term growth for the purposes of reforms and structural adjustments”.

Zhou Xiaochuan

People’s Bank of China Governor

Industrial production, in the first nine months of the year, rose by 9.6 % compared to the same period of 2012. Among the most significant increases there is that one of the production of groups with annual revenues exceeding twenty million yuan. The recovery orders to the country is considered the decisive factor in these positive results: in particular, it should be referred to the export growth that, after a heavy contraction, are appearing in lifts for two consecutive months. To ensure stability to the recovery of its economy, however, the Dragon can not afford to be complacent about inflationary pressures, the importance of which had come to be felt strongly in September, mainly due to th lenghthening of the delivery by the manufacturers.
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