Chinese manufacturing rose to its highest level in seven months according to an official index.
The Purchasing Managers’ Index (PMI) reached a high of 50.6 points in November, up from 50.2 in October, with a reading above 50 indicating expansion.
The brighter official figures comes after export demand increases.
The numbers follow a seven-quarter slowdown in China's economy, which had many analysts worried that the manufacturing powerhouse was losing steam.
Bloomberg said the new report will help ease pressure on China's leadership to overhaul state-owned companies and boost consumption.
The news service also noted that confidence in China's economy is at its highest in over a year, according to an investor poll.
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“It’s especially encouraging that the rise in the PMI was mainly driven by new orders, which suggests output will be further boosted in coming months,” Lu Ting, chief Greater China economist at Bank of America Corp. told Bloomberg.
“Beijing will maintain the current policy stance, which is featured as marginally pro-growth without big-bang stimulus.”
Business Insider reported that the numbers, though welcome, missed estimates of 50.8, and that new export orders remained weak compared with the same period in previous years.