According to the National Bureau of Statistics and the China Federation of Logistics, the Chinese manufacturing PMI increased to an 18-month high while beating estimates. The Chinese manufacturing PMI came in at 51.4 compared to the 51.1 in September. Analysts were looking for an increase to 51.2.
“With global demand momentum likely to pick up gradually and domestic demand growth remaining solid, we expect GDP growth to comfortably exceed the government’s bottom line in the coming quarters,” Louis Kuijs, chief China economist at Royal Bank of Scotland Group Plc.
Economists believe the Chinese GDP will increase 7.6 percent this year which is the same rate of growth in 1999, the slowest since 1990. Analysts believe China’s economy still has a way to go and forecast growth to slip to 7.4 percent in 2014.
The central planners of the communist nation will meet November 9 to discuss economic and social reforms. The Communist Party has a target to doubling the per capita income by 2020. China is aiming for the country to become a high income economy.
The surveys done by the China Federation of Logistics increased to 3,000 companies in its manufacturing survey from 820. The accurate HSBC survey is based on a smaller scale of 420 businesses that target smaller private companies.