China's economic performance rebounded further in November with two surveys yesterday pointing to improved operating conditions in both the service and manufacturing sectors.
The official non-manufacturing Business Activity Index, a gauge of vitality among mainly state-owned service companies, rose to 55.6 last month, the National Bureau of Statistics said. It increased 0.1 points from that in October, and was the strongest in three months.
Meanwhile, the HSBC Purchasing Managers' Index, which measures performance of largely private and export-oriented manufacturers, climbed to a 13-month high of 50.5 in November, up from 49.5 a month earlier, HSBC Holdings Plc and research firm Markit said.
In both surveys, a reading above 50 indicates expansion.
"China's economy has shown more signs of stabilization toward the year end," said Li Maoyu, an analyst at Changjiang Securities Co. "It is bolstered by growing demand from both home and abroad that is seen in industries such toys, retail, logistics and hospitality."
Qu Hongbin, chief economist for China and co-head of Asian economic research at HSBC, said the HSBC PMI confirmed that the Chinese economy was continuing to recover gradually.
"The 13-month high PMI is obtained on increasing new business and expanding production," Qu said. "We expect economic growth to rebound modestly to around 8 percent in the fourth quarter as easing measures continue to filter through."
The component indexes under the HSBC PMI showed that manufacturing production in November increased for the first time since July, new orders rose for a second month in a row and input prices also gained for a second month.
For service companies, new orders rose to 53.2 last month from 51.6 in October, and expectation of business activity climbed to a five-month high of 64.6.
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