China’s manufacturing sector remains strong

Activity in China's manufacturing sector was seen as remaining vigorous in November, official data showed Sunday, propping up confidence in the economic outlook after a preliminary survey pointed to a loss of growth momentum in the remainder of the year.

The official Purchasing Managers' Index (PMI) for November kept unchanged from October, when the reading hit an 18-month high of 51.4, according to figures released Sunday by the National Bureau of Statistics (NBS).

The official PMI reading, which mainly covers large and State-owned enterprises, has remained above the boom-bust line of 50 for 14 consecutive months, an indication of sustained manufacturing expansion.

The continuing rebound in the output sub-index, which rose to a 19-month new high of 54.5 in November, was seen as the main reason for keeping the factory sector stable, Zhao Qinghe, a senior NBS statistician, said Sunday in a statement posted on the bureau's website.

The sub-indexes measuring new export orders and imports moved up during the month as well, helping contribute to stabilization in the manufacturing sector.

The Sunday reading offered a fresh sign of stability, but concerns remain over a softening growth momentum for the country's economy.

Results of a preliminary survey showed on November 21 that the HSBC flash PMI would be heading for a retreat in November from the previous month's final reading of 50.9.

The final reading of the HSBC PMI covering mostly small and medium-sized enterprises is scheduled to be announced Monday.

The official PMI for November was still lower than average levels for the month, and re-stocking by manufacturers remained weak, Chen Hufei, a researcher with Bank of Communications, said in a research report sent to the Global Times on Sunday, indicating a lack of momentum in manufacturing activity growth.

A continued recovery divide seen in large enterprises and small enterprises, according to the official PMI readings for different sizes of enterprises, showed large enterprises have still been the biggest impetus for manufacturing expansion, while small and micro-sized enterprises remained under substantial pressure to revive their businesses, Chen said.

Large enterprises recorded a PMI reading of 52.4 in November, the highest level in 19 months, while the PMI reading for small enterprises edged down 0.2 percentage points from the previous month to 48.3 during the month.