Chinese financial information provider Caixin (財新) announced on the 2nd that the Caixin Manufacturing Purchasing Managers' Index (PMI) for November rose by 1.2 percentage points from the previous month (50.3) to 51.5.
This figure exceeds the market expectation of 50.5. Caixin stated that this marks the second consecutive month of expansion and the fastest growth rate since June. The Caixin PMI is based on surveys of corporate purchasing managers and serves as an indicator of economic trends. A value above 50 indicates economic expansion, while below 50 indicates contraction.
An employee is working at a lithium battery manufacturing company in Anhui Province, China. Photo by AFP Yonhap News
Earlier, the National Bureau of Statistics of China reported that the manufacturing PMI for November was 50.3, up 0.2 percentage points from the previous month, reaching the highest level since May.
The expansion in manufacturing activity in November appears to be influenced by companies accumulating inventory ahead of the inauguration of U.S. President-elect Donald Trump. Trump recently announced plans to impose an additional 10% tariff on China shortly after taking office.
New orders for Chinese manufacturers increased at the fastest pace since February 2023. In particular, new export orders rose for the first time in four months, reaching the highest level in seven months. However, companies still appear cautious regarding employment.
Wang Zhe, Chief Economist at the Caixin Think Tank, stated, "While the economic downturn seems to have bottomed out, further stabilization is needed, and companies must strengthen their confidence in expanding their workforce." He also emphasized the need to carefully observe how consistent and effective additional economic stimulus measures will be.
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