The HSBC’s final reading for the purchasing managers' index (PMI) for China’s manufacturing sector in December rose to 51.5, well above the preliminary reading of 50.9 published in the middle of the month and November's final reading of 50.5, as announced by the HSBC.
The HSBC’s China PMI for December has registered the highest level since May 2011, indicating the strongest activity in China's manufacturing sector since the month in question.
In December, the sub-index for new orders rose to 52.9, its highest level since January 2011. Meanwhile, the output sub-index also rose to its highest level since May 2011. However, the new export orders sub-index retreated below 50 in December due to the slowdown in the global markets.
"Such momentum is likely to be sustained in the coming months when infrastructure construction runs into full speed and property market conditions stabilize," according to Hongbin Qu, the HSBC's chief economist for China.
"This, together with the central government’s reiteration of keeping its pro-growth policy in place into the coming year, should support a modest growth recovery in China’s economy of around 8.6 percent year on year in 2013, despite the ongoing external weak conditions,” he added.