China's manufacturing sector grows fastest in seven months

China manufacturingAccording to the latest figures released, China's manufacturing sector has recorded its fastest growth in seven months during the month of October.

A new private survey showed on Friday that sector recorded strong growth backed by new export order, indicating that the economy is stabilising. The final HSBC/Markit Purchasing Managers' Index (PMI) was recorded at the rate of 50.9 compared to 50.2 in September. The figure was mostly in-line with preliminary flash estimate released in the previous week.

The HSBC survey showed that new export orders rose to 51.3, up from the initial reading of 50.8. Several Chinese firms have said that they have recorded strong demand form the US. Domestic new orders also grew at a stronger pace during themonth.

A reading above 50 indicates expansion while that below 50 indicates contraction. China's official PMI that was released earlier in the day showed that the manufacturing growth was at 51.4, the highest in 18 months. The official PMI accounts more towards bigger and state owned enterprises and produces more favourable results than the survey of the private sector.

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