China’s manufacturing sector experienced a contraction for the second consecutive month in November, indicating a slowdown in the momentum of the world’s second-largest economy. The official manufacturing Purchasing Managers’ Index (PMI) dropped to 49.4, falling short of the Bloomberg poll’s median forecast of 49.8 and marking a slight decrease from October’s 49.5 reading. A PMI below 50 signifies a contraction from the previous month.
The non-manufacturing PMI, although still in the growth zone, recorded its lowest level since the Covid outbreak last December at 50.2. Notably, the services industry, a crucial part of the non-manufacturing PMI, showed a decline to 49.3 points, indicating a contraction from the previous month’s 50.1.
These downward trends contrast with the better-than-expected 4.9% year-on-year GDP growth in the third quarter, which had sparked optimism about China’s post-pandemic economic recovery. Frederic Neumann, HSBC’s chief Asia economist, expressed concern over the loss of momentum, particularly in the services sector, which was expected to be a key driver of strength.
Source : https://www.researchandmarkets.com/issues/china-faces-manufacturing-slowdown-and-economic
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