China’s manufacturing sector bounces back in November
Weak global environment continued to drag new export businesses.
The overall health of factories in China expanded to a three-month high in November on the back of rising new orders, although growth was tempered by sliding export business, a closely watched industry survey showed.
The Caixin/S&P China general manufacturing purchasing managers’ index (PMI) rose to 50.7 last month from 49.5 in October, signalling a renewed improvement in the country’s manufacturing conditions.
Supporting last month’s PMI, which rose above the 50 neutral mark that separates expansion from deterioration, were sustained growth in new businesses that rose at the fastest pace since June despite continued weak demand from overseas.
Factories also raised their production as well as their purchasing activity in view of the stronger new orders last month. The survey showed cost pressures remained subdued last month with input costs rising at a slower pace than in October while output charges were mostly unchanged.
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Despite improving operating conditions, job shedding in Chinese factories continued in November albeit at a softer pace than the month prior.
Manufacturers also grew more optimistic last month on expectations demand at home and abroad will continue to increase in the next 12 months.
“The macro economy has been recovering. Household consumption, industrial production and market expectations have all improved,” Wang Zhe, senior economist at Caixin Insight Group, said. “But domestic and foreign demand is still insufficient, employment pressure remains high, and economic recovery has yet to find solid footing.”
