China Manufacturing May Expand for First Time in Thirteen Months
China’s manufacturing may expand in November for the first time in 13 months, adding to signs that economic growth is rebounding after a seven-quarter slowdown.
The preliminary reading was 50.4 for a purchasing managers’ index released today by HSBC Holdings Plc (HSBA) and Markit Economics. It compares with a final level of 49.5 for October. A reading above 50 indicates expansion.
A recovery in manufacturing would bolster prospects for a sustained pickup in economic growth that slowed last quarter to the weakest pace in more than three years. It would also reduce the likelihood that the ruling Communist Party’s new leadership including Li Keqiang, set to become premier in March, steps up monetary and fiscal efforts to boost expansion.
A separate, government-backed index of purchasing managers’ views at manufacturers, which showed an expansion in October for the first time in three months, is due to be released Dec. 1.
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