China: Upward trend in manufacturing PMI remains intact in November
December 1, 2016
The Purchasing Managers’ Index (PMI) ticked up from October’s 51.2% to 51.7% in November, according to the National Bureau of Statistics (NBS) and the China Federation of Logistics and Purchasing (CFLP), which publish the index. The reading, which was the highest since July 2014, overshot the 51.0% that market analysts had expected and was further above the 50% threshold that separates expansion from contraction in the manufacturing sector.
November’s reading reflected an overall improvement as all but one of the main sub-categories of the index gained ground from October’s print. In particular, employment prospects climbed to a three-year high, while production and new orders jumped to a 28-month high. On the downside, the suppliers’ delivery time category tumbled to a nearly four-year low in the same month. Input prices—a reliable leading indicator for producer prices—jumped to the highest point since early-2011, signaling tighter supply conditions and suggesting that overall inflationary pressures are on the rise. New exports rebounded to expansionary territory in November, painting a brighter outlook for global trade.