City skyline in China

China PMI November 2021

China: Manufacturing PMI picks up in November, non-Manufacturing PMI ticks down

The National Bureau of Statistics’ Manufacturing Purchasing Managers’ Index (PMI) came in at 50.1 in November, up from October’s 49.2. Consequently, the index rose above the 50-threshold, signaling an improvement in business conditions from the previous month. The headline print largely reflected stronger production, as well as smaller declines in new orders, new exports and employment. Improved power supply was likely an important factor behind the rise in production. Moreover, input price pressures moderated sharply in the month, amid a series of government measures which saw coal prices plummet.

In contrast, the non-Manufacturing PMI fell from 52.4 in October to 52.3 in November, due to a weaker services sector on the back of domestic Covid-19 flare-ups. However, the construction subcomponent improved as the government recently loosened some of its property curbs in order to avoid a hard landing in the real estate sector.

Analysts at Nomura are downbeat regarding the near-term outlook:

“Despite a material improvement from the energy shortage, a fine-tuning of overly aggressive property curbs and a shift in Beijing’s policy stance to easing we expect China’s economy to deteriorate further and, based on our view of recent economic shocks and their respective policy responses, we expect China’s growth path in this downturn to reach its nadir in Q1 2022.”

Free sample report

Access essential information in the shortest time possible. FocusEconomics provide hundreds of consensus forecast reports from the most reputable economic research authorities in the world.
Close Left Media Arrows Left Media Circles Right Media Arrows Right Media Circles Arrow Quote Wave Address Email Telephone Man in front of screen with line chart Document with bar chart and magnifying glass Application window with bar chart Target with arrow Line Chart Stopwatch Globe with arrows Document with bar chart in front of screen Bar chart with magnifying glass and dollar sign Lightbulb Document with bookmark Laptop with download icon Calendar Icon Nav Menu Arrow Arrow Right Long Icon Arrow Right Icon Chevron Right Icon Chevron Left Icon Briefcase Icon Linkedin In Icon Full Linkedin Icon Filter Facebook Linkedin Twitter Pinterest