China's manufacturing growth hits six-month high in October
01 Nov 2010
China's economic growth is accelerating even with rising inflationary pressures, suggesting that there may be enough room for policy makers to introduce additional tightening measures, according to a study based on indicators of manufacturing.
China's official purchasing managers index rose to 54.7 in October from 53.8 in September, according to the China Federation of Logistics and Purchasing (CFLP), which issues the data with the National Bureau of Statistics.
The survey showed that manufacturing activity in China hit a six-month high in October, pointing to a further consolidation of a recovery in the world's second-biggest economy.
A reading above 50 indicates expansion, while anything below 50 points to a decline.
The Chinese economy grew 9.6 per cent year-on-year in the third quarter, sliding from 10.3 per cent in the second quarter and 11.9 per cent in the first with government efforts to rein in property prices and bank lending rates starting to bite.
According to analysts, efforts to steer the country towards more sustainable growth in a direction less dependent on export have proved effective.