Chinese manufacturing fell to contraction territory in November, but remained broadly unchanged from the previous month.
Source: Markit Economics
MCHI is up 1.46% premarket.
The headline seasonally adjusted Purchasing Managers’ Index stood at 49.9 in November, lower than the 50.0 threshold that separates expansion and contraction. This is lower than the 50.6 recorded in October.
Manufacturing output posted growth for the first time since July, albeit at a fractional rate, as production was boosted by firmer market conditions and an improvement in energy supplies during the period.
Demand conditions softened while production improved to slow the growth of backlogs of work midway through the fourth quarter, with unfinished work rising at the slowest pace in nine months.
Firms reported lower staff numbers for the fourth straight month, as lower sales contributed to a decline in buying activity. Input costs increased modestly during the month, with inflation the fastest since October 2020.
Firms are generally optimistic of higher production in the following year, marking an improvement from the previous month.