HSBC China PMI hits 13-month high

A preliminary measure of manufacturing sector activity in November increased to a 13-month high, adding to signs that China’s economy is gaining momentum, Reuters reported. The HSBC China Flash Manufacturing Purchasing Managers Index (PMI) increased to 50.4 in November, up from 49.5 in October. A reading below 50 indicates manufacturing growth slowed; a reading above 50 indicates it accelerated. A sub-index for output also rose to a 12-month high of 51.3, from 48.2 the prior month. Markets will look to HSBC’s (HBC.NYSE, HSBA.LON, 0005.HKG) final manufacturing reading due on December 1 and the official government reading for confirmation the economy has reached a turning point. The HSBC China Manufacturing PMI had stayed below 50 since October 2011. “This confirms that the economic recovery continues to gain momentum towards the year-end,” said HSBC chief China economist Qu Hongbin.