China manufacturing activity grows more than expected in Nov- Caixin PMI
2024.12.01 21:11
Investing.com– China’s manufacturing sector grew at a faster-than-expected pace in November, purchasing managers index data showed on Monday, as a slew of recent stimulus measures from Beijing appeared to be bearing fruit.
The read 51.5 for November, much higher than expectations for a reading of 50.6, and the prior month’s reading of 50.3. The stronger print was driven by improved local and overseas demand.
Monday’s data comes after data released over the weekend showed China’s manufacturing sector grew slightly more than expected in November, marking a second straight month of expansion after Beijing rolled out more stimulus measures since late-September.
“While the economic downturn appears to be bottoming out, it needs further consolidation… The structural and cyclical pressures facing the economy are expected to continue, coupled with the likelihood of continued accumulation of external uncertainties, which requires sufficient policy buffers,” Wang Zhe, Senior Economist at Caixin Insight Group said in a note.
The Caixin data usually differs from the government PMIs, wherein the government survey focuses more on larger, state-run enterprises in the north, while the Caixin data covers smaller private companies in the south. Investors usually use both readings to gain a broader picture of the Chinese economy.
Beijing announced a slew of measures since late-September aimed at improving local liquidity conditions, supporting the property market and helping stem local government debt. But investors still clamored for more targeted fiscal measures, especially to support weak spending.
China was seen holding back on more stimulus measures in the face of a Donald Trump presidency in the U.S., given that Trump has vowed to impose steep trade tariffs against the country after taking office.
