China's factory activity grows beyond expectations in November, as indicated by the Caixin PMI.
- A private survey released Monday revealed that China's manufacturing activity is still expanding among smaller manufacturers in November.
- The manufacturing purchasing manager's index from Caixin/S&P Global was 51.5, surpassing the median estimate of 50.5 in a Reuters poll.
The recent stimulus efforts in China have helped lift certain sectors of its ailing economy, as indicated by a private survey released Monday, which showed that China's manufacturing activity continued to expand among smaller manufacturers in November.
The official manufacturing purchasing manager's index from Caixin/S&P Global came in at 51.5, surpassing the median estimate of 50.5 in a Reuters poll. This marks the second consecutive month that the official reading has remained above the critical 50 level, which distinguishes growth from contraction.
The private gauge, which was released after the official PMI data on Saturday, showed that manufacturing activity in the country expanded to 50.3 in November from 50.1 in the previous month. This reading surpassed Reuters' expectations of 50.2.
Compared to the official PMI survey, the Caixin survey usually includes more small- and medium-sized firms and private sector companies.
Retail sales in China's economy surpassed expectations in October, indicating early signs of recovery after stimulus measures were introduced in late September.
Real estate investment in January to October decreased by 10.3% compared to the previous year, while the country's industrial profits fell by 10% in October compared to the same period last year, marking the third consecutive month of decline.
In September, the Politburo intensified efforts to boost growth by committing to increased fiscal spending and stabilizing the struggling property sector. The People's Bank of China lowered the reserve requirement ratio by 50 basis points to increase liquidity in the economy, reducing the amount of cash banks are required to keep in reserve.
In November, China announced a five-year plan worth 10 trillion yuan ($1.4 trillion) to address local government debt problems, indicating that more economic assistance would be given in the following year.
The possibility of Donald Trump winning the presidency in 2024 has sparked fears about higher tariffs on Chinese goods, which could negatively impact its export industry.
China Economy
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