China's manufacturing PMI edges up in November

Daniel Fowler
December 3, 2019

Last month's figure was up 0.9 points from previous month, revealed the report of London-based global data company IHS Markit, prepared in collaboration with the Istanbul Chamber of Industry.

The Purchasing Managers' Index (PMI) for China's manufacturing sector edged up to 50.2 in November from 49.3 in October, the National Bureau of Statistics (NBS) said on Saturday.

This is the 28th consecutive month that the manufacturing PMI has remained above the 50-point mark.

"Japan's manufacturing sector remains firmly stuck in contraction", said Joe Hayes, economist at IHS Markit, which compiles the survey.

Output also rebounded to 47.5 in November from 46.3 in October, when it took its sharpest dive in 6-1/2 years, hit by political turmoil at home and overseas, Markit said. New orders, employment, raw materials purchases and backlogs of work all declined at a shallower rate, while optimism staged its biggest one-month bounce in over six years.

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The gauge of new export orders saw its first back-to-back monthly growth since early 2018.

Manufacturing companies generally expected output to rise over the next 12 months, but the measure of future output expectations slipped to a five-month low in November.

But the latest report also says the manufacturing sector is still facing downward pressure. New business rose strongly, which underpinned a further solid increase in production.

In November, "business confidence remained subdued, as concerns about policies and market conditions persisted, and their willingness to replenish stocks remained limited", wrote Zhengsheng Zhong, director of macroeconomic analysis at CEBM Group, a subsidiary of Caixin.

But, investors around the world have been eagerly awaiting the signing of a trade agreement since Trump said in October that the USA had come to a "very substantial phase one deal" with China.

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