(NBS) China’s manufacturing PMI was posted at 50.1 in November, up from 49.2 in October and the first expansion in three months. The PMI was a better than expected contraction of 49.6.
The uptick in manufacturing PMI reflects the easing of material prices and power rationing.
The production sub-index increased to 52.0 in November, from a contraction of 48.4 the previous month. Customer demand fell for the fourth consecutive month.
Input prices subindex plunged from 72.1 in October to 52.9 in November. Prices charged fell for the first time since May 2020.
The services sector weakened amid the growth in manufacturing, with the non-manufacturing PMI down to 52.3 in November from 52.4 in October.
Hwabao Trust economist Nie Wen expects China’s manufacturing PMI to hover around the 50-mark for several months due to constraining factors such as material costs, power rations, and weak demand. Fresh Covid-19 variant concerns could also curtail growth.
CSI 300 is down -0.40%, USDCNY is down -0.27%.
