China manufacturing sentiment hits highest level in 10 years in November
- The Caixin/Markit manufacturing purchasing managers’ index (PMI) rose to 54.9 in November from 53.6 in October
- On Monday, China’s official manufacturing purchasing managers’ index (PMI) was 52.1 in November, up from 51.4 in October to its highest since September 2017
China’s manufacturing activity extended its strong growth in November, according to data released on Tuesday.
The health of the sector has now improved in each of the past seven months, underlining China’s strong recovery from the coronavirus. A Bloomberg survey had expected a slight decline to 53.5.
The Caixin/Markit PMI focuses on small, private firms unlike the official index whose respondents come mostly from larger, state-owned firms.
A PMI reading of 50 separates growth from contraction. The further the level above or below 50, the faster the expansion or contraction.
Manufacturing recovered at a faster clip in November as supply and demand improved at the same time
“Manufacturing recovered at a faster clip in November as supply and demand improved at the same time,” said Wang Zhe, senior economist at Caixin Insight Group.
“Employment recovered markedly and overseas demand kept expanding. Manufacturing enterprises added to their inventories to meet demand and they were quite confident about the economic outlook for the next 12 months. The gauge for future output expectations stayed high.