London, 6 November 2009 

This week saw the release of broadly positive PMI (purchasing manager index) data most notably for the USA and for China, which in the view of Societe Generale confirms continuing economic recovery and support for metals prices going forward. 

Data released by the Chinese Federation of Logistics and Purchasing (CFLP) indicated that the Chinese manufacturing sector expanded at the fastest rate for 18 months in October, rising from 54.3 in September to 55.2. A number above 50 indicates an expansion of activity. Chinese headline PMI fell to a low of 38.8 in November 2008 as the global financial crisis hit its stride. 

Sub-indices have also been strongly positive, with index for new orders reaching 58.5 in October, up from 56.8 in September, while the actual index for output (production) reached 59.3 compared to 58 a month earlier.

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