Manufacturing activity in the mainland grew among smaller operators in November, causing the month’s performance to exceed expectations, CNBC reports.
November saw the Caixin/S&P Global manufacturing purchasing manager’s index (PMI) come in at 51.5, above a Reuters poll forecasting a reading of 50.5. Caixin Insight Group’s senior economist Wang Zhe attributed the positive conditions to “greater new business inflows” and a rise in export orders.
The official PMI – a survey of sentiment among factory owners – came in at a lower 50.3, up from 50.2 in October. This marked the second month in a row that the official reading stayed above 50, the point separating growth from contraction. Reuters had predicted that November’s official PMI would be 50.2.
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The difference in the two results reflects the fact that Caixin’s survey tends to focus on small-and medium-sized firms and private sector companies, while the official PMI survey typically polls large and state-owned firms.
Gary Ng, a senior economist at the French financial services firm Natixis, described the uptick as “an early sign of stabilisation in China’s manufacturing sector supported by the hope of stimulus.” He was referring to the raft of stimulus measures Beijing has been introducing since late September.
Ng noted that better consumer and business sentiment was still needed “to bring a more persistent rebound.” He added that domestic competition, external geopolitical headwinds, price wars and tariffs were all still economic risks for the mainland in 2025.
