China’s factory activity hits 5-month high in November: Caixin PMI

China’s Caixin/S&P Global manufacturing purchasing managers’ index rose to 51.5 in November, data released on Monday showed

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An employee works on a synthetic fiber production line at a textile factory in Qingdao, in China’s eastern Shandong province. Photo: AFP

Published: 9:57am, 2 Dec 2024Updated: 10:00am, 2 Dec 2024

China’s factory activity expanded at the fastest pace in five months in November as new orders, including from abroad, led to a solid rise in production, pushing manufacturers’ optimism degree to an eight-month high, a private-sector survey showed on Monday.

The reading largely echoed an official survey on Saturday, which showed manufacturing activity expanded modestly, suggesting a blitz of stimulus is finally trickling through the world’s second-largest economy just as Donald Trump ramps up his trade threats.

The Caixin/S&P Global manufacturing PMI rose to 51.5 in November from 50.3 the previous month, reaching the highest level since June and beating analysts’ forecasts in a Reuters poll of 50.5.

New orders placed with Chinese manufacturers increased at the fastest rate since February 2023.

New export orders, in particular, rose for the first time in four months and marked the highest in seven months. The orders mainly rose in the investment and intermediate goods segments and fell fractionally for consumer goods makers.

Anecdotal evidence revealed that better underlying demand, new product launches and stockpiling following the US election were among the reasons for the rise in new work.