China’s Nov PMI increases at fastest pace in almost 2 years

According to media reports, data released by China’s National Bureau of Statistics showed that the country’s official manufacturing Purchasing Managers’ Index (PMI) which measures large state-owned enterprises increased at its fastest pace in almost two years, rising to a reading of 51.7 in November from 51.2 in October on the back of a government infrastructure building and housing boom. Any figure above 50 represents an expansion while any figure below 50 shows a contraction. The PMI figure beats analysts’ expectations which had called for a reading of 51 in November.

The country’s economy reportedly grew by 6.7% in Q3 year-on-year and hit its target of 6.5-7% on the back of increasing government spending, bank lending and property market.

The sub-index for factory output rose to a reading of 53.9 in November from October’s 53.3, while the sub-index for new orders increased to a reading of 53.2 when compared to 52.8 in the previous month. It is also reported that the non-manufacturing PMI grew to 54.7 in November when compared to 54 in October, recording the highest level for 2016.

New export orders were broadly unchanged in November from 49.2 in October. However, output and new orders increased, though at a slower pace than October.