China's Caixin Manuf PMI remains stable in November

China's Nov Caixin manufacturing PMI came at 50.8 vs 50.9 expected and 51 last, signaling further marginal deterioration in operating conditions in April.

Summary

Chinese manufacturing sector operating conditions continued to improve in November, albeit at a marginal pace. Output and new orders both rose only modestly, leading to a softer expansion in buying activity. At the same time, companies faced a further sharp increase in average input costs, that led to a notable rise in selling prices. Efforts to cut costs contributed to another fall in staffing levels, with the rate of decline quickening to a three-month record.

Commenting on the China General Manufacturing PMI™ data, Dr. Zhengsheng Zhong, Director of Macroeconomic Analysis at CEBM Group said: “The Caixin China General Manufacturing Purchasing Managers’ Index (PMI) fell marginally from the previous month to 50.8 in November, but remained in expansion territory. The sub-index ofoutput inched up, rising for the first time in four months, but the new orders sub-index declined. The increase in input prices moderated while the rise in output prices accelerated, with both maintaining rather quick rates of growth. Stocks of purchases turned around to increase as stocks of finished goods continued to diminish."

“For the most part, the manufacturing sector remained stable in November, although some signs of weakness emerged. In the fourth quarter, the economy is likely to maintain the stability observed since the start of the second half of the year. Economic growth in 2017 is expected to be higher than last year, but it may come under downward pressure in 2018.”