China's economic recovery continuing to gather pace, PMI shows

1 February 2013

A new report has indicated that China's rate of economic growth is once again gathering pace after a relatively subdued period in 2012.

HSBC's purchasing managers' index (PMI) for the country released today (1 February) has shown that operating conditions in its manufacturing sector improved to their best level for two years in January.

In a measure where any score above 50 is indicative of growth, the PMI hit a level of 52.3 last month - a marked improvement on the figure of 51.5 recorded in December.

The bank attributed this upward movement mainly to the fact that new orders increased at their fastest pace since the early stages of 2011, while higher demand from international trading partners such as the US and Europe also helped boost exports.

Qu Hongbin, chief economist for China and co-head of Asian economic research at HSBC, said this trend is likely to continue in the coming months thanks to improvements in labour market conditions and higher investment spending.

By Gary Cooper

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