Official data: China’s manufacturing activities hit a 7-month high, driven by optimism from government stimulus
The month’s growth was driven mostly by demand for intermediate goods—suggesting that a slew of monetary and fiscal policies released in recent months had been effective at bolstering manufacturing confidence.
China’s manufacturing sector experienced a second consecutive month of expansion—achieving the fastest rate of growth since April—thanks to optimism surrounding recent government initiatives directed at the Chinese economy. The official manufacturing purchasing managers’ index (PMI) increased to 50.3 in November, up from October’s 50.1, according to the National Bureau of Statistics (NBS).
The month’s growth was driven mostly by demand for intermediate goods—suggesting that a slew of monetary and fiscal policies released in recent months had been effective at bolstering manufacturing confidence. The production and procurement indices at 52.4 and 51.0, respectively, reflected this optimism.
In contrast, new orders stood at only 50.8—up by just 0.8 points since October—with export orders at 48.1 points (up from 47.3).
The non-manufacturing sector declined from October’s 50.2 to 50.1 due to post-holiday cooling in the retail and hospitality sectors.
Written by: Derek Yong Zher