It was expected that the Caixin Manufacturing PMI of China It will reach 53.5 points, close to the 53.6 points of the previous month and a 3-year high. However, the manufacturing index has reached 54.9 points, exceeding all expectations and rising to 10-year highs.
Meanwhile, Reuters explains that “Activity in China’s manufacturing sector accelerated at the fastest pace in a decade in November, the business survey showed Tuesday, as the world’s second-largest economy recovers to pre-pandemic levels. “
Analysts Polled by Reuters had predicted the figure would drop to 53.5.
“Since COVID-19 paralyzed large sectors of the economy earlier this year, China has seen a strong rebound in activity, aided by tight virus containment measures, infrastructure-driven stimulus, strong exports of medical supplies and stifled demand. “
“Rising infections and new lockdowns in some of its key trading partners could affect demand for Chinese exports, which have so far been surprisingly resilient.”
“Caixin’s PMI reading was the highest since November 2010, and comes after an official indicator of factory activity, which focuses more on larger, state-owned companies, will grow at the fastest rate in more than three years. “
“The manufacture continued to recover and the economy increasingly returned to normal as the consequences of the national COVID-19 epidemic faded, “wrote Wang Zhe, senior economist at Caixin Insight Group, in a note accompanying the survey statement.
”The indicators both total new orders and factory production reached 10-year highs. New export orders increased more modestly. The private sector survey also showed that Chinese factories hired workers for the third month in a row and at a faster rate. ”
“Supply and demand improved at the same time. Employment recovered remarkably and foreign demand continued to expand, “said Wang.
“Prices of inputs and outputs increased, and respondents cited a strong increase in the cost of raw materialsespecially metals, “said Wang.
“We expect the economic recovery in the post-epidemic era continue for several months. At the same time, decide how to phase out the easing policies launched during the epidemic will require careful planningas there are still uncertainties inside and outside of China, “said Wang.