Japan factory activity shrinks in Nov as export slump deepens - PMI

Cornelia Mascio
Dicembre 10, 2019

The rate at which China's manufacturing activity is growing rose to its highest point in almost three years in November, driven by rising stocks of purchased items and stronger job creation, a Caixin-sponsored survey showed Monday.

The PMI rose to 51.2 in November from 50.6 in October, when it had fallen to a two-year low, indicating only a slight improvement in the health of the sector.

The figure pointed to an uptick in manufacturing production for the first time since April 2018 in November amid signs of improving market conditions.

This is the 28th consecutive month that the manufacturing PMI has remained above the 50-point mark.

"The Chinese economy continues to recover in November as domestic and external demand of the manufacturing sector maintained relatively fast growth", said Zhong Zhengsheng, director of macroeconomic analysis at CEBM Group, a subsidiary of Caixin.

"Consumer goods provided the main impetus to overall growth, while the intermediate goods category returned to expansion territory", the report said.

Coupled with rising domestic demand, total new orders rose strongly in November "with a number of firms citing firmer underlying demand conditions", according to the survey, though the reading dipped slightly from October when the growth rate was the highest in almost six years.

"Some level of uncertainty regarding the economy was evident by a subdued degree of business optimism".

Lima further noted that the weakness of these forward-looking indicators suggest that firms are bracing themselves for challenging times ahead.

On the inflation front, input and production costs only increased slightly in November.

The Caixin/IHS Markit manufacturing PMI reading was 51.8, signaling the sector's fastest rate of expansion since December 2016.

The RBI has reduced interest rates on every occasion that the Monetary Policy Committee (MPC) has been meeting since Shaktikanta Das took office as governor last December.

GDP growth slowed sharply to 4.5% in July-September, due to the decline in manufacturing output.

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