Western economists thrilled that China's economy keeps growing

CHINA's robust economy – seen as key to any global recovery – looks set to freshen further in 2010 after strong manufacturing data yesterday pushed a key economic survey to a 20-month high.

The state-sanctioned China Federation of Logistics and Purchasing said strong rises in new orders and output saw its monthly purchasing managers index (PMI) rise to 56.6, compared with 55.2 in November. Numbers above 50 indicate expansion.

It was the biggest month-on-month rise since last March, when the Chinese PMI jumped to 52.4 from 49 in the previous month.

The rising index "shows the situation of China's economy is stable and the recovery has been further consolidated," government economist Zhang Liqun said in a statement issued by the federation.

The figures will be welcomed by western economists, who see the strength of the Chinese economic locomotive as providing the main momentum to pull the west out of the widespread downturn.

Jing Ulrich, chairman of China equities at investment bank JP Morgan, said in a research note: "December's PMI reading suggests sustained expansion in industrial activity.

"The forward-looking components of PMI indicate continued expansion in both domestic and external demand."