A private survey published on Monday showed that China’s recent economic boosting strategies are bearing fruit in certain economic sectors as the country’s small-scale manufacturers recorded continued growth in November.
The manufacturing Purchasing Managers’ Index (PMI), as reported by Caixin/S&P Global, registered at 51.5, surpassing the median projection of 50.5 from a Reuters poll. It also marks the second consecutive month where the official metric has stayed above the critical 50 threshold, separating growth from contraction.
Senior Economist of Caixin Insight Group, Wang Zhe, attributed the improvement in manufacturing conditions to greater inflows of new business, noting that Chinese manufacturers witnessed the fastest rise in incoming new orders in more than three years, with a resurgence in export orders also supporting the increase in overall new orders.
The official PMI data disclosed earlier also revealed an expansion in manufacturing activity, moving from 50.1 in October to 50.3 in November, beating Reuters’ prediction of 50.2.
The Caixin survey generally includes more small to medium-sized businesses as well as private sector enterprises, distinguishing it from the official PMI survey which mainly involves larger and state-owned firms.
Gary Ng, a Senior Economist at Natixis, views the uptick as preliminary evidence of stabilization in China’s manufacturing industry, buoyed by economic stimulus hopes. However, he emphasized the importance of evaluating the advancement in real estate and size of fiscal spending in the upcoming months.
Ng added that persistent rebounding requires improved sentiment among consumers and businesses while rough domestic competition and international geopolitical turbulence continue to pose risks for 2025, potentially sparking price wars and tariffs.
