China’s Manufacturing Sector Grows at Fastest Pace in Over Three Years
The manufacturing sector in China registered the fastest rate of growth in over three years during the month of November, reinforcing expectations that the economy is well on its way towards recovery following the coronavirus outbreak earlier this year. According to data released by the NBS, China’s official manufacturing PMI improved to 52.1 in November from 51.4 in the previous month.
November’s reading came in better than economists’ forecast, which was for a slight rise to 51.5 instead. In addition, this was the highest reading for the manufacturing PMI seen since September 2017.
New export orders registered an increase, from the sub-index reading picking up from 51 in October to 51.4 in November. In addition, business activity among small manufacturers has also picked up, with the reading rising from 49.4 in October to 50.1 in November, crossing the 50-threshold indicating expansion.
China’s key manufacturing sector is on the rebound and working its way back towards pre-pandemic levels of activity on the back of strong external demand. However, the export-reliant sector and its economy overall do face risks from the second wave of the pandemic currently underway across most parts of the US, Europe and other countries.
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