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AlwaysFree: China’s November Manufacturing Activity Seen Contracting At Slower Rate

Author: SSESSMENTS

China’s manufacturing activity would likely continue contracting in November, albeit at a slower rate than October, according to analysts in a Reuters poll. These analysts expect China’s official manufacturing purchasing managers’ index (PMI) to rise to 49.6 in November from 49.2 in October. They attributed the slower contraction to an uptick in factory output after the National Day holiday and the easing in the ongoing energy crunch.

However, several factors, including high raw material prices, a crackdown on the property sector, and supply shortages, continued weighing on the country’s post-pandemic recovery. China’s economy appeared to have lost momentum in recent months, dragged by slowing manufacturing activity, property debt crisis, and widespread COVID-19 outbreaks. A severe power crunch has also prompted authorities to intervene in the coal market.

The People’s Bank of China is expected to move cautiously on easing monetary policy to prop up growth, as surging producer inflation sparks concerns over stagflation. China’s factory-gate inflation climbed to a 26-year high in October, further squeezing profit margins for producers. The National Bureau of Statistics is due to release its official PMI data later on Tuesday.

Tags: All Products,AlwaysFree,Asia Pacific,China,English,NEA

Published on November 30, 2021 12:35 PM (GMT+8)
Last Updated on November 30, 2021 12:35 PM (GMT+8)