Looks like all the naysayers and doomsdayers can shut their pie holes–China is back to red-hot growth. At least in manufacturing.
Gulf News reports that manufacturing activity in China hit a 13-month high in November, another sign that the world’s second largest economy is emerging from a drawn-out slumber:
“[HSBC’s] purchasing managers’ index (PMI) hit 50.5 last month, up from 49.5 in October, putting it above the 50 mark that indicates growth. A reading below signals contraction.
The figure signals a return to growth after 12 consecutive months of contraction as the crucial manufacturing sector has been hit by a global slowdown, as well as the debt crisis in key market Europe, where demand for Chinese goods has slumped.
It is the highest reading since October last year, when the figure was 51, according to HSBC data.
China’s official PMI reading also showed expansion in November for the second month in a row, hitting 50.6, compared with 50.2 in October and 49.8 in September.”
Although the Shanghai stock market was still slumping, even after the news was announced, investors see this as a clear indication that the much-dreaded Chinese slowdown is in fact over. Those of us earning euros can rejoice–economists have said that the euro hit a six-week high simply because of the good news coming out of China.
The Irish Times had more:
“The euro hit a six-week high and shares rose today as signs of quicker Chinese growth boosted investors’ risk appetite although gains were capped by US budget worries.
Activity in China’s vast manufacturing sector sped up for the first time in 13 months in November, according to the latest Purchasing Managers’ Surveys (PMI), adding to evidence the economy is reviving after seven quarters of slowing growth …
The euro hit a six-week high against the dollar at $1.3048 on the upbeat Chinese data, before settling to be around $1.3030 ahead of the a euro zone finance ministers meeting which is due to assess the latest plan to help Greece.
The Greek government has unveiled details of a €10 billion bond buy-back crucial to cutting its ballooning debt pile, hoping the terms will draw enough investors and unblock aid.
The dollar was down 0.1 per cent against the yen at 82.27, but not far from a 7-1/2-month high of 82.84 yen touched on November 22.
Oil prices were underpinned by the firm Chinese data, tensions in the Middle East.”
What do you think? Is it time to celebrate, or is Greece likely to ruin it for everyone?
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