The coronavirus emerged in the Chinese city of Wuhan, and the coronavirus pandemic is not over yet. Hopefully, the country’s government worked hard to cope with the coronavirus, but many countries are still struggling to stabilize the situation. It is worth noting that manufacturing activity in China expanded for the ninth month in a row and this fact once more underlines the strength of the local economy.
According to the country’s National Bureau of Statistics, the official manufacturing Purchasing Managers’ Index (PMI) for November came in at 52.1. Interestingly, that’s the highest reading in more than three years. This is not the end of the story, as this result also surpassed expectations.
It is worth mentioning that, PMI readings above 50 indicate expansion, while those below that signal contraction. Importantly, PMI readings are sequential and show month-on-month expansion or contraction.
Interestingly, as can be seen from the data, the recovery in China’s vast manufacturing sector accelerated thanks to several factors. People should keep in mind that four factors boosted manufacturing activity in November.
Let’s have a look at the factors. Notably, both supply and demand of Chinese manufactured goods continued to improve in November. Also, imports, as well as exports, steadily recovered last month. Moreover, prices of both raw materials and output also rose, and prospects of manufacturers of all sizes also improved last month. The world’s second-largest economy demonstrated its strength as well as potential.
Economy and interesting details
It is worth noting that China also released PMI data for the services sector. The data for that sector also showed that activity expanded for the ninth straight month. According to the National Bureau of Statistics, the official non-manufacturing PMI reading for November was 56.4.
Overall, based on the information provided by China, its composite PMI for this month came in at 55.7.
People should take into account that the Asian economic giant is expected to continue on the same path into 2021. Moreover, China could be the only major economy to register growth this year. It is worth mentioning that the International Monetary Fund expects the Chinese economy to expand by 1.9% in 2020. As a reminder, last year the country’s economy expanded by 6.1%.
The coronavirus pandemic created a lot of problems for countries around the globe. However, the world’s second-largest economy once more demonstrated its strength and ability to respond to various challenges. China should work with other countries to boost the global economy.