PLC 4ever
Related Articles
A key indicator of economic activity in China fell back into contraction territory in November after a brief rally in October, with demand remaining weak despite easing supply-side pressures.
The Caixin China General Manufacturing Purchasing Managers’ Index for November, a private measure of monthly sector activity, came in at 49.9 for the month, just below the 50 point line separating contraction and expansion.
Yesterday, the country’s official PMI, released by the National Bureau of Statistics, was 50.1. The official PMI places more emphasis on the activity of larger state-owned companies and is generally more optimistic than the Caixin reading.
Like the official PMI, the Caixin numbers showed that easing the power shortage that hit the economy in October slightly boosted production, which rose for the first time in four months. Inflationary pressures have also eased “significantly,” with the slowest price increase in more than a year, said Caixin.
However, the increase in output was offset by a decline in incoming orders. In addition, the manufacturers reduced their number of employees for the fourth time in as many months.
“Manufacturing supply recovered while demand weakened. The easing of supply-side restrictions, particularly the easing of electricity shortages, accelerated the pace of production recovery, â€said Wang Zhe, chief economist at Caixin Insight Group.
“Policy makers should continue to focus on helping small and medium-sized businesses. They should also watch out for problems including deteriorating employment, limited household income growth, and weak consumer spending power. “
