The Chinese mainland's factory activity continued its upward trajectory in November, marking the second consecutive month of growth and signaling a steady recovery in the world's second-largest economy.
According to data released by the National Bureau of Statistics (NBS) on Saturday, the manufacturing Purchasing Managers' Index (PMI) rose to 50.3 in November, an increase of 0.2 points from October. This rise not only marks the third consecutive month of growth but also the second month where the PMI surpassed the expansion threshold of 50.
The uplift in the headline PMI was primarily driven by significant improvements in key sub-indices, including new orders, production expectations, and purchasing volumes. These components experienced notable gains, while the production index maintained steady growth. Collectively, the four main indices reached a seven-month high, reflecting the robust performance of the manufacturing sector.
Zhang Liqun, an economist and special analyst at the NBS, highlighted that the continued increase in the manufacturing PMI is a strong indicator of recovery from the recent economic downturn. He emphasized that the incremental policy measures implemented are effectively boosting business confidence, which in turn has positive ripple effects on the broader economy.
In contrast, the non-manufacturing PMI saw a slight decrease, dropping to 50.0 from October's 50.2. Despite this minor decline, the composite PMI, which combines both manufacturing and non-manufacturing sectors, remained stable at 50.8, suggesting a balanced and steady overall economic performance.
Looking ahead, analysts are optimistic that the positive trends will persist. They observe that market demand and supply are experiencing steady growth, with new economic drivers and consumer goods manufacturing accelerating. Additionally, rising business expectations are further reinforcing a trend of economic stabilization and recovery.
The latest data indicates that the Chinese mainland's economy is gradually gaining momentum, with various indicators pointing towards strengthened growth prospects in the coming months, according to the NBS.
Reference(s):
China's factory activity expands for second month in November
cgtn.com
