China's November Factory Activity Inches Back Into Expansion
The Purchasing Managers' Index - a leading indicator of manufacturing activity - in the world's second-largest economy increased to 50.1, rising beyond the 50-point threshold that separates expansion and contraction after two months.
China's economy, which recovered well from last year's pandemic depression, has slowed in the second half of this year as it grapples with declining manufacturing, debt issues in the housing sector, and COVID-19 outbreaks.
Additionally, the newest statistics from the National Bureau of Statistics exceeded the 49.7 reading predicted by a Bloomberg survey of economists.
"A series of recent policy actions aimed at enhancing energy supply security and stabilizing market prices have yielded benefits," NBS senior statistician Zhao Qinghe said in a statement.
Market observers anticipate that the third-quarter downturn in gross domestic product (GDP) would extend into the fourth quarter, with demand being lackluster.
A variety of newly implemented policies and procedures aimed at ensuring energy supply and stabilizing market prices have been demonstrated to be effective, according to Zhao.
"Power rationing relaxed slightly in November, while the prices of certain raw materials fell dramatically, resulting in an increase in the manufacturing PMI," Zhao added.
A subindex for output increased to 52.0 in November from 48.4 in October, reflecting the positive headline PMI, while new orders declined at a slower pace, but November marked the fourth consecutive month of losses in customer demand.
Foreign trade has also improved as a result of the world economy's recovery and the approaching Christmas season, Zhao said. Read More…
