Chinese manufacturing activity unexpectedly rebounds in Nov- Caixin PMI
2023.11.30 21:28
© Reuters.
Investing.com– Chinese manufacturing activity unexpectedly rose back into expansion in November, a private survey showed on Friday, as a mild increase in domestic demand helped offset a persistent decline in overseas orders.
The (PMI) rose to 50.7 in November, beating expectations for a reading of 49.3, and improving sharply from the 49.6 seen in the prior month.
A reading above 50 indicates expansion, with the Caixin survey now coming back into growth after an unexpected contraction in October.
The reading was in contrast to data released on Thursday, which showed a bigger-than-expected decline in manufacturing activity. But the Caixin survey differs from the government survey in its scope, wherein it focuses more on smaller, private enterprises, as opposed to the bigger, state-run enterprises covered by the official survey. Investors usually use both surveys to get a broader picture of the Chinese economy.
Still, Friday’s data indicated some improvement in China’s biggest economic engines, especially as Beijing increased its pace of liquidity injections and supportive measures over the past month. An improvement in local new business orders was a key point of support for manufacturing activity, helping slightly offset a continued decline in overseas demand.
“The macro economy has been recovering. Household consumption, industrial production and market expectations have all improved. But domestic and foreign demand is still insufficient, employment pressure remains high, and economic recovery has yet to find solid footing,” Wang Zhe, senior economist at Caixin Insight Group wrote in a note.
Zhe noted that employment conditions in the manufacturing sector still remained weak, and said that more policy support was needed to improve consumption and employment. He also noted that the Chinese economy remained largely on track to attain the 5% annual growth target set by the government.
Beijing is set to roll out a 1 trillion yuan ($139 billion) bond issuance to spur infrastructure spending and economic growth in the coming months. The government was also seen preparing more funding support for China’s beleaguered property sector, which has been a major drag on economic growth over the past three years.
