China’s manufacturing activity unexpectedly picked up in November, rising for the first time in three months on easing raw material prices and energy rationing.
The official industry’s Purchasing Managers Index (PMI) rose to 50.1 in November from 49.2 in October, data from the National Statistics Agency showed on Tuesday.
The 50 mark separates growth from contraction. Analysts had expected a reading of 49.6.
Analysts predict the slowdown in Gross Domestic Product seen in the third quarter will continue into the fourth, with demand expected to remain weak.
“A series of newly adopted policies and measures to secure energy supplies and stabilize market prices have proven to be effective,” said Zhao Qinghe, senior statistician at the statistics agency.
“Energy rationing eased a bit in November as prices for some raw materials dropped significantly, prompting an expansion in the industry PMI.”
The production sub-index rose to 52.0 in November from 48.4 in October, while new orders fell at a slower pace, although November marked the fourth straight month of falling customer demand.
In contrast to the improvement in the manufacturing sector, services growth decelerated slightly, with the official PMI falling to 52.3 in November from 52.4 in October.
Reference: CNN Brasil
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