Caixin’s Nov China manufacturing PMI rises to 49.4

SINGAPORE (ICIS)–Caixin’s China manufacturing purchasing managers’ index (PMI) rose to 49.4 in November from 49.2 in October but remained in contractionary territory as ongoing COVID-19 containment measures continued to weigh on the sector, the Chinese media firm said on Thursday.

A PMI reading above 50 indicates expansion in the manufacturing economy, while a lower number denotes contraction.

Manufacturers in China registered a further fall in output, with the rate of contraction picking up slightly from October, amid a sustained reduction in sales, Caixin said in a statement.

Factory output in China fell for the third month running in November, with the rate of reduction quickening from October, but remaining mild overall.

“Companies frequently linked the decline to the impact of COVID-19 restrictions on operations and customer demand,” Caixin said.

Pandemic restrictions and reduced production requirements also led firms to cut back on purchasing activity and contributed to a further drop in staff numbers.

New orders likewise fell further, though the rate of contraction eased to a marginal pace that was the weakest in four months.

The pandemic, and subsequent difficulties in transporting goods, also weighed on foreign demand, which fell for the fourth month in a row.

“At the same time, the rate of input cost inflation picked up in November. Though mild, the latest upturn in expenses was the quickest seen since June amid reports of higher costs for some raw materials such as metals and oil,” Caixin said.