Here’s Why China’s Manufacturers Continued to Grow in November
New data show that China’s manufacturing sector has managed to hold on to gains realized in previous months, Bloomberg reports.
The HSBC Purchasing Managers’ Index, which gauges the level of activity among China’s manufacturers, came in at 50.8 in November, slightly beating out most expectations. Though this is down a fraction from October’s 50.9, the change is virtually negligible, not representing a significant degree of change in activity. Because levels of 50 or more signal expansion, the number means that China’s manufacturing sector has continued to grow throughout the later parts of 2013.
This is important because some had predicted a dropoff in activity toward the end of the year as China reined in its stimulus programs. As economic growth picked up in the third quarter of 2013, the Chinese government relaxed a number of initiatives designed to boost liquidity in the country amid rising inflation rates. Some analysts had forecast that this would have an adverse effect on businesses during the fourth quarter of this year, potentially erasing gains made in the third quarter. In the manufacturing sector, these fears appear not to have been realized.