China’s manufacturing sector has grown for the first time in 13 months, according to a survey of private factory managers.
HSBC’s Purchasing Managers’ Survey (PMI), a closely followed indicator on the health of the Chinese economy, rose to 50.5 in November, up from 49.5 in October.
Any figure higher than 50 indicates growth, and the latest result is the first time the survey has returned positive data since October 2011.
The HSBC data follows a similar survey by China’s National Bureau of Statistics that showed an official PMI of 50.6, up from 50.2 in October.
“This confirms that the Chinese economy continues to recover gradually,” HSBC chief China economist Hongbin Qu said.
While the manufacturing PMI numbers are positive for the Chinese economy, experts remain concerned the sector is still relying too heavily on state-led investment, according to Reuters.
"Whilst we feel that the economy has been stabilized through the short-term, we feel that the manner in which activity has been revived will retard China's economic reform agenda and make the transition onto a sustainable footing all the more tricky," wrote Xianfang Ren and Alistair Thornton of IHS Global Insight.