China's Manufacturing PMI Hits 52.1 in November... Highest in 3 Years

Highest Since September 2017... Non-Manufacturing PMI Also at 56.4
9 Consecutive Months of Expansion... Signs of Recovery from COVID-19 Impact

[Image source=Reuters Yonhap News]

[Asia Economy Reporter Hyunwoo Lee] One of the key indicators of China's economic trends, the Manufacturing Purchasing Managers' Index (PMI), has recorded its highest level in three years. The Chinese government has self-assessed that the Chinese economy shows a clear recovery trend from the impact of the novel coronavirus disease (COVID-19), as the manufacturing PMI has exceeded 50, indicating an expansion phase, for nine consecutive months since hitting a historic low of 35.7 in February.

According to the National Bureau of Statistics of China on the 30th, the manufacturing PMI for November stood at 52.1, marking the highest level in over three years since September 2017. The November manufacturing PMI surpassed both the previous month's 51.4 and the market forecast of 51.5. The manufacturing PMI is a major indicator reflecting economic trends, with 50 as the baseline; readings above 50 indicate an expansion phase, while those below 50 indicate a contraction phase.

By detailed components, the production index recorded 54.7, up 0.8 points from the previous month, and the new orders index rose 1.1 points to 53.9. With the recovery of overseas demand, indices related to exports and imports also improved, with the new export orders index and import index rising to 51.5 and 50.9 respectively, both higher than the previous month. The non-manufacturing PMI, released on the same day, also continued its expansion phase at 56.4. The non-manufacturing PMI has remained above 55 for four consecutive months, indicating a strong performance.

The Chinese National Bureau of Statistics stated, "The manufacturing PMI for November, which recorded above the critical point for nine consecutive months and increased compared to the previous month, shows that the recovery growth of manufacturing is accelerating," and self-assessed that the Chinese economy is clearly showing a recovery trend from the impact of COVID-19. Previously, China's monthly manufacturing PMI plunged to a historic low of 35.7 in February due to the shock of the COVID-19 outbreak, but has maintained above 50 for nine consecutive months from March to November.