Economy
Economic indices at peaks, signal rosy outlook
(Agencies)
Updated: 2009-12-01 14:23
As is often the case, the two indexes told slightly different tales. Whereas HSBC's survey is slanted towards privately owned, export-orientated firms, the official one is weighted more heavily towards big domestic companies.
The official PMI was unchanged from October's 18-month high of 55.2. New export orders, imports, employment and quantities of purchases all fell back from the month before.
Still, the index was in positive territory for the ninth consecutive month, and Zhang Liqun, a government economist, said the poll pointed to a continuing steady recovery.
As government pump-priming gradually lost momentum, demand would be driven more by the private sector, Zhang said.
"Such a change is positive, showing that China's economic growth is becoming more stable and sustainable," Zhang, who works for the Development Research Center, a think-tank under the State Council, China's cabinet, said in a statement.
Jing Ulrich, chairman of China equities and commodities at J.P. Morgan, agreed that the forward-looking components of the PMI indicated continued expansion in both domestic and external demand.
"While public investment may moderate, private real estate investment, consumer spending and export demand should drive growth in the coming months," she said in a note.
