Factories brighten recovery hopes

PMI reaches 50.1 in Nov, confirming positive effects of economic policies

More pro-growth policies are likely to kick in and consolidate China's economic recovery that has gained a firmer footing in November, with manufacturing activities returning to expansion territory, experts said on Tuesday.

Their comments emerged after the National Bureau of Statistics said China's official purchasing managers index, a key gauge of manufacturing activity, rose to 50.1 in November from 49.2 in October, marking a four-month high and indicating accelerated activity in the sector.

The PMI reading returned to expansion territory after two consecutive months of contraction, thanks mainly to stronger production levels, stabilized electricity supply and tempered hikes in raw material prices. A PMI reading above the mark of 50 indicates expansion, while one below the threshold signals contraction.