China’s factory activity shrinks in November as coronavirus curbs take ‘toll on the economy’
- Caixin/S&P Global manufacturing purchasing managers’ index (PMI) rose to 49.4 in November, up from 49.2 in October
- On Wednesday, China’s official manufacturing PMI fell to 48 in November from 49.2 in October
China’s factory activity shrank in November as widespread coronavirus curbs disrupted manufacturers’ output, a private sector survey showed on Thursday, weighing on employment and economic growth in the fourth quarter.
But the reading marks the fourth monthly contraction in a row, as the 50-point index mark separates growth from contraction on a monthly basis.
Overall, the pandemic continued to take a toll on the economy
“Overall, the pandemic continued to take a toll on the economy. Output contracted, total demand was under pressure, overseas demand remained weak, employment deteriorated, logistics was sluggish, and manufacturers faced growing operating pressure,” said Wang Zhe, senior economist at Caixin Insight Group.
“As the measure for suppliers’ delivery times is negatively correlated to the PMI, the fall in the measure partially offset the drop in the PMI, leading the decline in November manufacturing activity to be underestimated.”