BEIJING- China’s factory activity unexpectedly picked up in November, growing for the first time in three months as the crippling surge in raw material prices and power rationing eased, taking some pressure off the manufacturing sector.
The official manufacturing Purchasing Managers’ Index (PMI) rose to 50.1 in November from 49.2 in October, data from the National Bureau of Statistics (NBS) showed on Tuesday.
The 50-point mark separates growth from contraction. Analysts had expected it to come in at 49.6.
The world’s second-largest economy, which staged an impressive rebound from last year’s pandemic slump, has lost momentum in the second half of this year as it grapples with slowing manufacturing, debt problems in the property market and COVID-19 outbreaks.
Analysts expect the slowdown in gross domestic product (GDP)seen in the third-quarter to continue in the fourth with demand expected to remain soft.
“A series of recently introduced policies and measures to ensure energy supply and stabilize market prices has been proven to be effective,” said Zhao Qinghe, senior statistician at the NBS.
“Power rationing eased somewhat in November while prices for some raw materials dropped significantly, driving an expansion in manufacturing PMI.”
Reflecting the positive headline PMI, a subindex for production rose to 52.0 in November from 48.4 in October while new orders fell at a slower pace, although November marked the fourth straight month of declines in customer demand.
There were also signs of relief elsewhere in Asia with Japanese factory output rising for the first time in four months in October as facilities in other parts of the region resumed operations after COVID-19 closures.
The supply resumption helped cool the prices of crucial production materials.
A sub-index for input prices in the Chinese PMI stood at 52.9 in November, down significantly from 72.1 in the previous month, pointing to easing cost pressures.
That drove prices charged lower, falling for the first time since May 2020.
