China’s manufacturing activity remained in contraction for the second straight month in November, signalling a rockier path ahead for the world’s second-largest economy.
The manufacturing PMI reading was lower than market expectations, with Bloomberg predicting slight growth to 49.8. It is the lowest reading since 49.3 in July.
A PMI reading higher than 50 typically indicates expansion of activity, while a reading below denotes a contraction.
“Affected by factors including some manufacturing industries entering the traditional off-season and insufficient market demand, the manufacturing PMI was slightly lower than last month by 0.1 percentage points,” said NBS statistician Zhao Qinghe.
The non-manufacturing PMI, meanwhile, stood at 50.2 in November, compared to 50.6 in October.
The official composite PMI, which includes both manufacturing and services, fell to 50.4, down from 50.7 in October.
S&P global Ratings predicted in its economic outlook on Sunday that China’s economy would grow by 5.4 per cent in 2023, year on year, but could slow to 4.6 per cent growth next year.
“China’s outlook has improved, but obstacles remain,” analysts at S&P Global said.
“A property downturn is still a pain point for the Chinese economy, but growth momentum has slightly improved because of policy support.”
More to follow …