China Manufacturing Gauge Shows Rebound in November

- Advertisement -


By Jonathan Cheng
- Advertisement -

BEIJING — An official gauge of China’s construction unexpectedly rebounded for expansion in November, ending a two-month contraction caused by a power outage.

- Advertisement -

The National Bureau of Statistics said on Tuesday that the Official Manufacturing Purchasing Managers’ Index rose to 50.1 in November from 49.2 in October.

The result was better than the 49.6 average forecast in a Wall Street Journal survey of economists and jumped above the 50-point mark that separates expansion of manufacturing activity from contraction.

- Advertisement -

China’s official manufacturing PMI slipped below the 50 mark in September and October due to power shortages, prompting Beijing to intervene to boost coal production and impose price caps on coal.

“The power supply shortfall in November and some raw material prices dropped significantly, prompting PMI to return to manufacturing,” said Zhao Qinghe, a senior statistician at NBS.

The output measuring subindex rose to 52 in November, compared to 48.4 in October.

But sub-indices that measure domestic and external demand remained in contraction territory this month. The subindex of total new orders increased from 48.8 in October to 49.4 in November. The subindex, which measures new export orders, rose to 48.5 compared to 46.6 in October.

Also released on Tuesday was the official non-manufacturing PMI, which includes both service and construction activities, and decreased slightly to 52.3 in November from 52.4 in October.

The Bureau of Statistics said the index was pulled down mainly by the recent flare-up of Covid infections.

Write Jonathan Cheng at [email protected]

,

- Advertisement -

Stay on top - Get the daily news in your inbox

DMCA / Correction Notice

Recent Articles

Related Stories

Stay on top - Get the daily news in your inbox