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China’s manufacturing industry has returned to growth after a year of contraction. HSBC’s latest Flash Purchasing Managers’ Index™ for November is 50.4, up from 49.5 in October, indicating that businesses are starting to expand once more.

The critical figure of 50 signifies the difference between an industry shrinking or growing. November’s figure is the first time the PMI ™ has climbed above 50 since October 2011.

The index is compiled using the views of senior purchasing executives in more than 420 companies who comment on 11 areas of their business – from the level of new orders to input prices. It is seen as a key indicator to the health of the manufacturing industry in the world’s biggest exporter.

A number of crucial areas showed a shift from contraction to expansion during November, including new export orders and output. The Flash China Manufacturing Output Index hit 51.3, up from 48.2 in October, a 13-month high. But Qu Hongbin, HSBC’s chief economist for Greater China, warns that the industry continues to face unsettled times.

He said: “This confirms that the economic recovery continues to gain momentum towards the year end. However, it is still the early stage of recovery and global economic growth remains fragile.”

The Flash PMI is an initial estimate based on 90 per cent of the survey’s responses.  November’s final PMI figure will be released on 3 December 2012.

The intellectual property rights to the HSBC Flash China Manufacturing PMI™ provided herein is owned by Markit Economics Limited. Any unauthorised use, including but not limited to copying, distributing, transmitting or otherwise of any data appearing is not permitted without Markit's prior consent. Markit shall not have any liability, duty or obligation for or relating to the content or information ("data") contained herein, any errors, inaccuracies, omissions or delays in the data, or for any actions taken in reliance thereon. In no event shall Markit be liable for any special, incidental, or consequential damages, arising out of the use of the data. Purchasing Managers' Index™ and PMI™ are trade marks of Markit Economics Limited, HSBC use the above marks under license. Markit and the Markit logo are registered trade marks of Markit Group Limited.

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