Investing.com – China’s manufacturing sector grew faster than expected in November, purchasing managers’ index data showed on Monday, as a series of recent stimulus measures from Beijing appeared to bear fruit.
A reading of 51.5 for November, well above expectations for a reading of 50.6, and the previous month’s reading of 50.3. Stronger printing was driven by improved local and overseas demand.
Monday’s data comes after data released over the weekend showed China’s manufacturing sector grew slightly more than expected in November, marking a second straight month of expansion after Beijing introduced more stimulus measures since late September.
“Although the economic downturn appears to have bottomed out, it needs further consolidation… The structural and cyclical pressures facing the economy are expected to continue, along with the likelihood of continued accumulation of external uncertainties, which requires sufficient policy buffers,” Wang Zhe, Senior Economist at Caixin Insight Group said in a note.
Caixin data tend to differ from government PMIs, with the government’s survey focusing more on larger, state-owned enterprises in the north, while Caixin data covers smaller private firms in the south. Investors typically use both readings to get a bigger picture of China’s economy.
Since the end of September, Beijing has announced a series of measures aimed at improving local liquidity conditions, supporting the real estate market and helping to stem local government debt. But investors continued to demand more targeted fiscal measures, especially to support weak spending.
China has been seen holding back on further stimulus measures ahead of Donald Trump’s US presidency, with Trump vowing to impose tough trade tariffs against the country after taking office.
