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China unlikely to ease up on stimulus just yet even as economic recovery gathers pace in November
- China’s manufacturing and non-manufacturing purchasing managers’ indices, which measure economic sentiment, rose in November for the ninth month in a row
- The official manufacturing purchasing managers’ index (PMI) rose to its highest since September 2017, while the non-manufacturing PMI was the highest since June 2012
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China’s economic recovery accelerated in November, according to data published on Monday, but Beijing is unlikely to ease up on its support measures just yet given the resurgence of the coronavirus pandemic in key trading partners and questions about the outlook for domestic employment, analysts said.
The manufacturing and non-manufacturing purchasing managers’ indices, which measure economic sentiment in the world’s second largest economy, rose in November for the ninth month in a row, underlining the continued strong recovery in the economy since the widespread lockdowns at the start of the year to combat the coronavirus outbreak.
The official manufacturing purchasing managers’ index (PMI) – a survey of sentiment among factory owners – rose to 52.1 last month from 51.4 in October, led by increases in both new orders and production, according to the National Bureau of Statistics (NBS). November’s reading was higher than the median prediction of a poll of analysts conducted by Bloomberg, which expected a small rise to 51.5.
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China’s non-manufacturing PMI – a gauge of sentiment in the services and construction sectors – rose to 56.4 from October’s reading of 56.2. Analysts had forecast a drop to 56.0.
Both supply and demand are booming
“Both supply and demand are booming,” said Li Chao, chief economist at Zheshang Securities.
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