Activity at a factory in China expanded at the fastest pace in the last decade, with data showing Tuesday. This is the latest sign that the world’s second-largest economy is on track to recover from the coronavirus.
The Purchasing Managers Index, released by Chinese media group Caixin, was released the day after official PMI figures showed the fastest growth in more than three years.
PMI is an important indicator of activity in national factories, and Caixin’s survey targets SMEs. Some appear to be a more accurate reflection of China’s economic situation than official government statistics that more closely track the state of large national groups.
The November 54.9 reading shatters expectations that it is about the same as the October 53.6, the strongest since November 2010. Anything over 50 is considered growth.
Data suggest that manufacturers recorded a “rapid and accelerated increase in production” in November, which companies have taken from the increase in order volumes and the Covid-19 turmoil earlier this year. Due to recovery.
“The underlying data suggests that the upturn continues to be driven by strong domestic demand,” Kaishin said.
However, he added that despite a significant increase in purchasing activity, supplier inventory shortages were reported and it continued to take longer to receive goods.
The official PMI for November was 52.1, showing Monday, surpassing the 51.4 seen last month and returning to the last level seen in September 2017.
Julian Evans Pritchard, senior China economist at consultancy Capital Economics, said the employment factor was “especially encouraging,” adding that improving the labor market would facilitate a further recovery in consumption.
Exports are also a factor. “In summary, both studies suggest that foreign demand for Covid-19-related products remains strong amid new blockades abroad, and export growth in the short term,” said Capital Economics. Suggests further acceleration. “
China Factory Activity Sees Fastest Growth In Decade: Survey Source link China Factory Activity Sees Fastest Growth In Decade: Survey