China’s factory activity rebounds as energy crunch eases
China’s factory activity rebounds as energy crunch eases

China’s factory activity rebounds as energy crunch eases

BEIJING, Nov. 30 (Xinhua) — China’s factory activity picked up in November following the easing of power shortages and a drop in raw material prices, official data showed Tuesday.

The purchasing managers’ index (PMI) for China’s manufacturing sector came in at 50.1 in November, up from 49.2 in October, according to the National Bureau of Statistics (NBS).

A reading above 50 indicates expansion, while a reading below reflects contraction.

The rise came after the country’s measures to ensure adequate energy supply and stabilize market prices started to work, said NBS senior statistician Zhao Qinghe.

In November, the sub-index measuring purchase prices of major raw materials dropped 19.2 percentage points from October to 52.9. The ex-factory price index fell to 48.9, down 12.2 percentage points from last month.

The sub-index for production expanded 3.6 percentage points to 52, while that for new orders increased 0.6 percentage points to 49.4.

The figures showed that both production and market demand in the manufacturing sector were on an upturn last month, said Zhao.

The new export order and import sub-indexes edged up to 48.5 and 48.1, respectively.

Zhao attributed the upward trend in foreign trade to factors including the global economic recovery and the nearing Christmas season in overseas markets.

The high-tech and equipment manufacturing sectors continued to expand in November, with their PMI at 53.2 and 51.7, respectively.

Large enterprises maintained steady operation this month, with their PMI standing at 50.2, roughly the same as last month. The PMI for medium and small enterprises came in at 51.2 and 48.5, respectively. The PMI for small enterprises edged up 1 percent, signifying a reduction of pressure.

Tuesday’s data also showed that the PMI for China’s non-manufacturing sector came in at 52.3 in November, down from 52.4 in October.

Business activities in the non-manufacturing sector continued expansion and generally maintained stable recovery, according to NBS senior statistician Zhao Qinghe.

In November, the sub-index for business activities in the services sector stood at 51.1, down 0.5 percentage points from that in October.

Producer services sectors that are closely related to manufacturing activities saw their sub-index above 55 percent. Sectors such as information, financial, and business services registered marked increases in their business volume, said the NBS.

The sub-index tracking business-activity expectations for the services sector stood at a relatively high level of 58.2, showing most service enterprises are optimistic about the market in the near term.

In October, China’s construction industry maintained steady growth, with the sub-index for business activities standing at 59.1. The index measuring new orders stood at 54.2. 


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