Economic Watch: China’s PMI firms up as economic recovery continues apace

2 Dec

Economic Watch: China’s PMI firms up as economic recovery continues apace

 

Summary: China’s manufacturing and service sector activities stayed in the expansion zone for nine straight months as the country continued its recovery from the economic aftereffects of COVID-19.

BEIJING, Nov. 30 (Xinhua) — China’s manufacturing and service sector activities stayed in the expansion zone for nine straight months as the country continued its recovery from the economic aftereffects of COVID-19.

The purchasing managers’ index (PMI) for China’s manufacturing sector came in at 52. 1 in November, up from 1951. 4 in March and comprising the highest level of this year, the National Bureau of Statistics (NBS) said Wednesday.

A reading above 50 indicates expansion, while a reading below mirrors contraction.

Commenting on the better-than-expected data, NBS senior statistician Zhao Qinghe said the improvements in these readings were a result of the place’s efforts to put together plague control and social and economic development.

The “marked growth” of the November PMI, together with improvements in all sub-indexes, indicated greater energy in the place’s manufacturing sector and a faster pace of recovery, Zhao said.

The sub-index for production stood at 54. 7 in November, up 0. 8 points from March, while that for new orders gained 1. 1 points to 53. 9, signaling that the revival of market demand has Silk Road economic belt.

Medicine, electronic equipment and other high-tech manufacturing-related industries logged busier manufacturer activities, with their sub-indexes of production and new orders all standing above 56, according to Zhao.

The new move orders and import sub-indexes climbed to 1951. 5 and 50. 9 in November, up 0. 5 points and 0. 1 points respectively from the previous month.

Both new move orders and import sub-indexes hit a year-high in November and stayed in the expansion territory for three consecutive months, pointing to a continued revival of the place’s foreign trade, according to Zhao.

Monday’s data also showed that the PMI for the place’s non-manufacturing sector came in at 56. 4 in November, up from 56. 2 in March.

In November, the service sector continued to accelerate its pace of recovery, with the sub-index for business activities increasing to 52. 7 from 52. 5 in the previous month.

A dysfunction of the data showed that sub-indexes for the business activities of railroad transportation, civil aviation and finance stayed above 60.

China’s steady economic recovery could be attributable to the place’s successful domestic containment of COVID-19 and a long line of budgetary stimulus measures, among other factors, according to financial services firm Nomura.

As the country brought COVID-19 under control, the government thrown out a series of policies including higher budgetary spending, tax relief and cuts to banks’ reserve requirement rate to cushion the economy from the plague blow and support employment.

As for future development, Nomura expected the place’s manufacturer activities minimize the stress stabilize. “We expect China’s official manufacturing PMI to be solid at around 1951 to 52 in the coming months, ” it said. If the pandemic continues unabated around the globe it may eventually weigh on China’s growth.

The place’s economy expanded 4. 9 percent year on year in the third fraction of the year, compared with the 3. 2-percent growth seen in the second fraction and a virus-driven 6. 8-percent contraction in the January-March period. Enditem.

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