SHANGHAI – China’s manufacturing sector in November expanded at a faster pace compared to October and its service sector also grew, according to data published on Thursday by the National Bureau of Statistics of China.
The manufacturing purchasing managers’ index (PMI) of the world’s second largest economy stood at 51.8 points, two tenths more than the 51.6 points registered in October.
The latest expansion came after the indicator fell from 52.4 to 51.6 points in October compared to September and according to the NBS, demonstrates a continuous impulse in the economy.
On the other hand, China’s non-manufacturing sector also expanded at a faster pace in November and reached 54.8 points, up from 54.3 in October.
If the PMI, a monthly indicator based on surveys of about 3,000 different-sized companies in China, remains above the 50-point mark, it shows the manufacturing economy is expanding, while figures below the 50-point threshold reflect a contraction.
According to Capital Economics analyst Julian Evans-Pritchard, the data isn’t reliable as they have provided false data in the past.
The latest official readings of the PMI suggest that although the manufacturing industry maintains steady month-to-month expansion, some unfavorable base effects might cause most indicators’ year-on-year growth to drop in November.
“We doubt the current momentum in manufacturing will be sustained given that the sector faces increasing headwinds in the months ahead from the anti-pollution crackdown, slower credit growth, reduced fiscal support and a cooling property market,” the analyst said.