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          China Daily Website

          October PMI 'signals growth momentum'

          Updated: 2013-11-01 23:16
          By CHEN JIA ( China Daily)

          Economic indicator increases from stronger output, rise in new orders

          Manufacturing activity hit an 18-month high in October, a development that analysts said showed a consolidation of economic growth momentum for the fourth quarter.

          The official manufacturing Purchasing Managers' Index rose to 51.4 in October from 51.1 in September, the fourth monthly gain in a row, the National Bureau of Statistics and the China Federation of Logistics and Purchasing said on Friday.

          Stronger output and a continued increase in new orders combined to lift the PMI.

          New export orders also continued to grow but at a modest pace, according to the statistics.

          Zhu Haibin, chief economist at JPMorgan Chase & Co, said that the latest PMI reading was evidence of "solid" momentum for economic activity in the near term, providing a favorable backdrop for policies to focus on structural reform.

          In October, the PMI for large manufacturers climbed to 52.3 from 52.1 in September, the 14th consecutive month that it held above 50. A PMI reading above 50 means expansion, while one below 50 indicates contraction.

          The medium-sized enterprises' PMI climbed to 50.2 from 49.7, rising above 50 for the first time in five months. But the figure for small businesses declined to 48.5 from 48.8.

          "It seems that the recovery is still mainly confined to large and medium-sized enterprises, while small enterprises still face a challenging environment," said Zhu.

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