China’s manufacturing sector maintained relatively steady growth in November, according to the HSBC China Manufacturing Purchasing Managers’ Index™ (PMI™).
The headline index was 50.8 in November, up from the earlier flash reading of 50.4. Although slightly down from 50.9 in October, this was the second-highest reading in eight months.
The final manufacturing PMI™ was revised up from the flash reading on the back of faster new business gains
Chief Economist for Greater China, HSBC
Production levels at Chinese manufacturers increased for the fourth month running. Growth was supported by a quicker expansion of total new business. This was despite new export orders rising at a fractional pace, suggesting that new order growth was largely driven by domestic demand.
Staffing levels fell slightly and backlogs of work continued to increase.
Qu Hongbin, Chief Economist for Greater China and Co-Head of Asian Economic Research, HSBC, said: “China’s manufacturing sector kept relatively steady growth momentum in November, as the final manufacturing PMI™ was revised up from the flash reading on the back of faster new business gains. However, the renewed contraction of employment and the slower pace of restocking activities call for a continuation of accommodative policy. The modest inflationary pressures leave room to do so."
India’s manufacturing sector recovers
Meanwhile India, another large emerging economy, saw an improvement in manufacturing conditions in November.
The HSBC India Manufacturing PMI™ rose to 51.3 in November, from 49.6 in October. This was the first reading above 50.0 since July. New orders, output and purchasing activity all increased, and job creation was sustained.
Leif Eskesen, Chief Economist for India & ASEAN at HSBC, said: "Manufacturing activity picked up led by a rise in new domestic orders, which helped pull up output growth. Encouragingly, input and output price inflation eased, which, if sustained, could imply that the Reserve Bank of India is getting closer to the end of its tightening cycle, although it may still need to notch rates up a bit further.”
PMIs™ are based on data compiled from monthly replies to questionnaires sent to purchasing executives in manufacturing companies. A reading above 50 indicates expansion, while one below 50 signals contraction.
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