(Yicai) Dec. 15 -- China needs to promote industrial upgrading and development with scientific and technological innovation to make better products to fuel new demand, the statistics bureau said after the manufacturing sector contracted for the second straight month last month.

The country must create high-quality supply to drive fresh demand, and promote the manufacturing industry to achieve higher-quality development, Liu Aihua, a spokesperson of the National Bureau of Statistics, responded to Yicai’s question at a press conference today.

In November, the manufacturing purchasing managers’ index dropped slightly from October, and especially the 0.1 point decline in the new orders sub-index to 49.4 percent indicated that the primary issue standing in the way of recovery and development is insufficient market demand, Liu said, adding that the foundation for recovery still needs to be consolidated. A reading above 50 means expansion.

The PMI trend in recent months shows that the critical period of economic recovery, transformation, and upgrading continues, she said.

The trend points to manufacturers' confidence about resuming growth in the future, according to Liu. The sub-index of production and operation expectations rose by 0.2 point to 55.8 percent last month, remaining above 55 percent for the fifth consecutive month.

Moreover, industry data shows that firms are upgrading, per Liu. Last month, the high-tech manufacturing PMI index jumped by 2 points to 51.2 percent from October. The equipment manufacturing PMI was at 51.6 percent, up 0.9 point. The added value of high-tech manufacturing increased by 6.2 percent from a year earlier, and the added value of equipment manufacturing surged by 9.8 percent, as the growth rates accelerated by 4.4 and 3.6 percentage points, respectively.

Editor: Emmi Laine