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China's non-manufacturing sector growth rises

Posted on Dec 03, 07:07PM | IANS

The purchasing managers index (PMI) for China's non-manufacturing sector was 55.6 percent in November, up 0.1 percentage point from October, according to survey results released by the National Bureau of Statistics (NBS) Monday.

A PMI reading above 50 percent indicates expansion from the previous month, while a reading below 50 percent indicates contraction.

The index for new orders expanded 1.6 percentage points to 53.2 percent, indicating continued market growth, reported Xinhua.

The index for the construction sector grew 58.1 percent, up 2.7 percentage points from October. The index for the service sector was 52.0 percent, up 1.3 percentage points from the previous month.

Indices for other service sectors, including the Internet and software information technology, postal, telecommunication, broadcast television and satellite transmission sectors, each came in at more than 60 percent, showing strong growth momentum.

Indices for the environmental protection, catering, public facility management, and air and road transportation sectors were all under 50 percent.

The figures followed the Saturday release of the manufacturing sector PMI, which rose to 50.6 percent in November from 50.2 percent in October.

Cai Jin, vice chairman of the China Federation of Logistics and Purchasing (CFLP), said Monday that the data indicates that the non-manufacturing sector's growth has picked up speed, buoyed by rising domestic demand.

In November, the new order index tracking the construction industry hit its highest point for the year, indicating that new construction is speeding up overall, Cai said.

The PMI for the real estate industry stood at 55.3 percent in November, staying above 50 percent for the second consecutive month.

China has recognized the strategic importance of boosting domestic demand, as the country's economic growth has slowed against the backdrop of the global economic downturn.

China's economy expanded 7.4 percent year on year in the third quarter of 2012.

The government has rolled out an array of measures this year to buoy the slowing economy, including two benchmark interest rate cuts, the easing of bank reserve requirements and the approval of a significant number of new infrastructure projects.