China's Manufacturing Sector Expands Most In A Decade
China's manufacturing sector logged its strongest growth in a
decade in November, to indicate a sustained recovery from the
Covid-19 outbreak, survey data from IHS Markit showed Tuesday.
The Caixin manufacturing Purchasing Managers' Index rose to 54.9
in November from 53.6 in October. A score above 50 indicates
expansion in the sector.
This was the highest score since November 2010. The sector has
expanded in each of the past seven months.
Manufacturing companies reported that production increased at
the fastest pace in ten years driven by new orders as well as
further recovery from the Covid-19 related disruptions seen earlier
in the year.
New orders also advanced the most in a decade underpinned by
firmer domestic demand. Growth in new export work was not as marked
as that seen for total new orders.
The sustained and strong upturn in client demand led to the
fastest increase in employment since May 2011. At the same time,
firms raised their purchasing activity at the steepest rate since
Greater market demand contributed to stronger inflationary
pressures, with both input costs and output charges rising at
sharper rates, the survey showed.
Business confidence regarding the 12-month outlook for output
remained strongly positive in November, despite easing slightly
"We expect the economic recovery in the post-epidemic era to
continue for several months," Wang Zhe, senior economist at Caixin
Insight Group said.
"At the same time, deciding how to gradually withdraw the easing
policies launched during the epidemic will require careful planning
as uncertainties still exist inside and outside China," the