The HSBC purchasing managers' index (PMI) for China rose to a final reading of 50.8 in November, almost unchanged from the 50.9 recorded in October and up from the previously released flash estimate of 50.4 for November, HSBC Holdings PLC announced on December 2.Accordingly, the sub-index for output recorded an eight-month high of 52.2 in November from a reading of 51.1 in October, and the sub-index for new orders climbed up to 51.7 in November from 51.5 in October. Meanwhile, in November the sub-index for new export orders dropped to 50.3 from 51.3 in October, and the employment sub-index declined to 48.8 from 50.5 in October.
Qu Hongbin, chief economist for China with the HSBC, said that China's manufacturing sector maintained a relatively steady growth momentum in November, with the final manufacturing PMI being revised up from the flash reading on the back of faster new business gains. However, the renewed contraction of employment and the slower pace of restocking activities require a continuation of the Chinese government’s accommodative policy, he said, adding that modest inflationary pressures leave room for a continuation of this policy.