China’s factory activity contracts in November for 8th month in a row
Manufacturing PMI comes in at 49.2 but survey official says business sentiment has improved
China’s factory activity contracted for an eighth consecutive month in November, according to official data, as external headwinds and weak domestic demand continued to drag on the world’s second-largest economy.
The manufacturing purchasing managers’ index (PMI) stood at 49.2 in November, up from 49 a month earlier, the National Bureau of Statistics said on Sunday.
The reading was in line with a forecast of 49.2 based on economists polled by financial data provider Wind.
The monthly index compiles survey data given by supply chain managers from various sectors. A reading above 50 suggests economic expansion, while one below 50 indicates contraction.
“Business sentiment has improved,” said Huo Lihui, chief statistician of the bureau’s service industry survey centre, adding that both the supply and demand sides of the manufacturing industry had strengthened, with small enterprises seeing a notable rise in activity.
The new orders sub-index – a measure of manufacturing demand – came in at 49.2 in November, up from 48.8 in October. Meanwhile, the production sub-index rose to 50 from 49.7 in September.