China's PMI index hits new highs

10 consecutive months above critical point according to information released by Xinhua National Bureau of Statistics, China Logistics and Purchasing Association, the national Manufacturing Purchasing Managers Index (PMI) was 56.6% in December 2009, the highest since May 2008.　　Surveys show that the December National PMI index is higher than last month 1.4%, and 10 consecutive months at the critical point (50%) above, indicating that China's manufacturing industry overall continued to maintain a good momentum of recovery. The December PMI classification index, with the exception of the main raw materials inventory index, has been upgraded. Among them, the production index was 61.4%, up 2% from last month; The New Order index was 61%, up 2.6% from last month.　　This shows that the continuous rise in production, market demand is also increasing. The survey showed that in December PMI, the main raw materials purchase price index was 66.7%, higher than last month 3.3%, hit a record high of nearly 1.5.　　This shows that the cost of manufacturing production continues to increase, influenced by recent increases in commodity prices, such as coal and oil, and the adjustment of non-resident electricity prices. PMI is an important global macroeconomic precursor index. China's PMI fell to 38.8% in November 2008. In the stimulus package, PMI rallied, the first time in March 2009 to exceed the critical point, to 52.4%, after the overall rally.