November 2016 manufacturing PMI hit a new high of two years, the economy has stabilized, warmer sign

November 2016 PMI rose to a two-year high. According to the National Bureau of statistics data released yesterday (December 1st), November official manufacturing PMI rose further to 51.7%, an increase of 0.5 percentage points compared to October, 4 consecutive months in the top of the line ups and downs, and the highest since August 2014.
“ market demand pick up, industrial enterprises profit growth speed, industrial product prices, and promote the manufacturing sector continued to improve the situation, since the beginning of the manufacturing sector PMI showed a gradual recovery trend. ” Bank of communications financial research center senior researcher Liu Xuezhi analysis.
From the five sub index point of view, four liters a drop, as a whole to maintain a clear upward trend. Among them, the production and new orders index rose 0.6, respectively, to 53.9% percentage points, 0.4, 53.2%, at a higher level of expansion. Although the inventory of raw materials and the employment index is still below the line ups and downs, respectively 48.4% and 49.2%, but each increased by 0.3 percentage points, to keep rising trend. The supplier delivery time is the only one of the five major items of decline, down by 0.5 percentage points to 49.7%.
“ raw material supplier delivery time to slow down, may demand in the demand, is also affected to production capacity increase, some steel prices soaring shortage of building materials. ” Liu Xuezhi further analysis.
Released on the same day in November non manufacturing PMI rose to 54.7%, the highest since July 2014. Among them, the service sector to maintain a steady development trend, the service sector business activity index rose 1.1 percentage points to 53.7%, the highest point for the year. Construction boom index fell 1.4 percentage points to 60.4%, a high decline phenomenon. Liu Xuezhi said the manufacturing PMI and non manufacturing PMI continued to rise, the economy stabilized to clear signs of recovery in the fourth quarter economic growth may be higher than 6.7%.
Western securities macroeconomic analyst Liu Yanzhao pointed out that the PMI data show that prices rose to prevent the economy from sliding into deflation trap energy actively. The supply side reforms, complemented by a robust neutral monetary policy significantly push up the price level, to prevent a liquidity trap into macroeconomic deflation, the increasingly significant positive effect on economic growth.
In addition, in November the new financial PMI index released yesterday was 50.9%, compared to October fell 0.3%, the index and the small mining enterprises index trend.