China PMI at 7-month high

China’s manufacturing activity in November expanded at the fastest pace in seven months, suggesting the economy is strong enough for continued policy tightening, Bloomberg reported, citing an index by China’s logistics federation. The Purchasing Managers’ Index rose to 55.2 from 54.7 in October, according to the China Federation of Logistics and Purchasing. A reading above 50 indicates an expanding manufacturing sector. China’s policy makers are trying to stem the fastest inflation rate in 25 months while seeking to maintain the country’s growth. Analysts expect that the strong PMI reading would influence the government to continue its tightening policies, and that China’s key interest rates will rise again before the end of the year.