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China Growth: China Signals a Bottom as Growth Picks Up
Pinnacle Digest writes: China’s major industrial companies reported a 7.8% collective on-Year increase in their profits for September, thus reversing 5 straight months of decline. This, combined with better than forecasted manufacturing numbers, is supporting the fact that the world’s 2nd-largest economy is showing signs of bottoming and is on the rise.
The National Bureau of Statistics reported profits of China’s major industrial enterprises rose to 464.3 billion Yuan (US$73.7-B) in September, after falling 6.3% from a year earlier in August.
China's manufacturing numbers are also on the rise. The preliminary HSBC China Manufacturing Purchasing Managers Index, a popular gauge of manufacturing activity in China announced Wednesday, rose to a 3-month high of 49.1 in October, compared with a final reading of 47.9 in September. This confirmed analysts' expectations that a rise in China’s economy is on track. This is the first increase in China's manufacturing in 4 months.
Ebeling and Live Trading News continue to expect industrial profit growth to pick up in the coming months as investment by local governments in China boost demand. Stronger growth from China is what base metal traders have been hoping for as this bodes well for short-term price appreciation and increased demand across the metals sector.
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