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China Daily Website

Flash PMI data point to growth

Updated: 2013-09-24 06:40
By He Wei in Shanghai ( China Daily)

Flash PMI data point to growth

Workers examine mining equipment on Monday in Huaibei, Anhui province. HSBC's preliminary PMI reading for September, which is at 51.2, boosted confidence that the government's annual growth target could be met. Xie Zhengyi / for China Daily

A similar trend has also been seen at Shanghai SIIC Zhentai Chemical Co Ltd, a company of about 200 employees that makes magnesium oxide products for manufacturing companies. Orders from both domestic and overseas clients have picked up since June, said company spokesman Liang Hong.

"We're also considering adding new staff as signs of a recovery are becoming more evident," Liang noted.

At the same time, last month, China's industrial output, retail sales and export data all showed gains.

The economic recovery may continue until November as monetary policy may be tightened after the third plenary session of the Communist Party of China Central Committee, a defining meeting to discuss deepening reforms in an all-round way, according to Zhang Zhiwei, chief economist in China at Nomura Securities Co Ltd.

"The recovery has been mostly supported by heavy industry, such as steel production. However, at the November meeting we expect the government to shift its focus away from the speed of growth, toward efforts to rebalance the economy and improve the quality of growth," he said.

He expects the official PMI figure to rise to 51.7 in September from 51 in the previous month.

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