China’s factory activity unexpectedly rose in November as the surge in raw materials prices and power rationing cooled down. CSI 300 Index down -0.40%, CNY USD up +0.26%
- The official manufacturing Purchasing Managers’ Index (PMI) expanded to 50.1 in November from 49.2 in October.
- The world’s second-largest economy has lost its steam in the second half of this year as it struggles with easing off manufacturing, debt problems in the property market, and COVID-19 outbreaks.
- Analysts project the slowdown in the gross domestic product (GDP) in Q3 to continue in the fourth with demand projected to cool down.
- Zhao Qinghe, the senior statistician at NBS, stated that a sequence of recently introduced policies and measures to stabilize market prices had been proven effective.
- Qinghe further stated that power rationing eased to a small extent in November as prices for raw materials fell, causing expansion in manufacturing PMI.
- China’s October composite PMI, which incorporates both manufacturing and services activity, stood at 52.2, up from October’s 50.8.