China’s November manufacturing PMI to be released
The Chinese National Bureau of Statistics will release the updated November Purchasing Management Index (PMI) figures today.
The Chinese PMI index measures the performance of the manufacturing sector by surveying large, state-owned companies and their supply chains. A reading above 50 indicates an expansion of the manufacturing sector compared to the previous month; below 50, a contraction. The upcoming report is expected to show a PMI of 51.5.
Chinese manufacturing has experienced a decade-high boom this year after falling in February as the result of pandemic-induced supply chain closures. Beijing enacted far-reaching measures to successfully control the domestic outbreak and now the Chinese economy has regained its momentum as factories reopen. Although ongoing trade disputes with the US have forced some export manufacturing operations to relocate outside of China, Beijing’s aggressive industrialisation over the past decades does not seem to be slowing down. With today’s figures in mind, readers should expect the Chinese economy to be on pace to meet the forecast 2% growth this year. Furthermore, expect current growth to continue to provide a foundation for Beijing’s long-term strategy of shifting to an economy driven by internal consumption rather than exports.
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