The HSBC Holdings Plc and Markit Economics purchase managers index rose to a seasonally adjusted 56.1 from 55.7 in November. It was the highest reading for the index since April 2004. Note that the rule is if it is above 50 you have growth. Below 50 the opposite. Therefore 56.1 shows strong growth.
Indeed, the report sees China’s growth accelerating to 9.4% this year from an estimated 8.5% in 2009 as the Chinese government continues its stimulus and other world economies recover from the 2008 financial credit crisis.
Lu Ting of Bank of America-Merrill Lynch in Hong Kong said, "China’s strong recovery momentum will boost manufacturers’ confidence and improved earnings will help them to increase investment and output."
Seeking Alpha reported Chinese manufacturing firms’ profits rose 7.8% in the first 11 months of last year to a record $379 billion.