China’s factory activity unexpectedly expanded in November, driven by rising orders, a private survey showed on Friday, but sluggish external demand continues to weigh on manufacturers.
The official and Caixin surveys have different samples, with the Caixin PMI focusing on export-oriented enterprises and small and medium-sized enterprises in the country’s coastal region.
“The economy is running at different speeds across industries, though we expect the policy stance to remain proactive which will help to sustain overall growth momentum into the coming quarters,” economists at HSBC said on Thursday.
The data was supported by the quickest rise since June in new orders received by Chinese goods producers in November.
Factory owners, hence, expanded their production and purchasing activity with the two subindices rebounding to growth in November from contractions in October.
The world’s second-biggest economy has shown a feeble post-pandemic recovery dragged by a property sector downturn, local government debt risks and slow global growth. The government has launched a slew of policy measures this year to prop up growth.
Investment promises, visa-free entry: 7 things from China’s economy in November
Investment promises, visa-free entry: 7 things from China’s economy in November
Optimism regarding the 12-month outlook increased to the highest since July. The survey said firms were hopeful that greater customer demand at home and overseas will support growth over the coming year.
Weak external demand was an important factor affecting factory activity, with the new export index registering 49 in November, having contracted for five consecutive months.
Payroll cuts in the sector persisted for the third month.
