Chinese manufacturing staged a surprise recovery — rallying to an 8-month high in November

china manufacturing

  • China’s manufacturing sector staged a surprise recovery
    in November.
  • The official manufacturing Purchasing Managers Index
    (PMI) returned a reading of 50.2, up from 49.3 in October, and its
    highest score since March.
  • The Caixin/IHS Markit manufacturing PMI reading was
    51.8, signaling the sector’s fastest rate of expansion since
    December 2016.
  • The rally comes after President Donald Trump said last
    month that the US had reached a “very substantial phase-one deal”
    with China in their talks to end the trade war.
  • View Business Insider’s
    homepage for more stories
    .

China’s manufacturing sector staged a surprise recovery in
November, according to both state and private surveys.

The
official manufacturing Purchasing Managers Index
(PMI) returned
a reading of 50.2, up from 49.3 in October, and its highest score
since March. A reading above 50 indicates a sector is expanding,
while one below 50 suggests it’s contracting.

Similarly, the
Caixin/IHS Markit manufacturing PMI
reading was 51.8, signaling
the sector’s fastest rate of expansion since December 2016.
Economists polled by Reuters expected the index to have dropped
from 51.7 in October to 51.4 in November.

“The PMI data out today supports the idea that the global growth
slowdown is bottoming out,” Jasper Lawler, head of research at
London Capital Group, said in a morning note.

The Chinese government tends to poll more large companies and
state-owned enterprises, while the Caixin and IHS Markit survey
focuses more on small and mid-sized firms.

The Chinese manufacturing rally comes after President Donald
Trump said in October that the US had reached a “very
substantial phase one deal
” with China in their talks to end
the two nations’ trade war. 

However, Chinese officials are insisting that a phase-one deal
will require Trump to not only delay tariffs scheduled to take
effect on December 15, but roll back existing tariffs,
according to Global Times
, a Chinese state newspaper.


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Source: FS – All – Economy – News
Chinese manufacturing staged a surprise recovery — rallying to an 8-month high in November