Technical Analysis

China November Manufacturing PMI 49.4 (prior 49.2)

<p>The second of the monthly manufacturing PMIs from China, the Caixin / Markit survey.</p><p>Earlier this week we had the official PMIs from China's National Bureau of Statistics. </p><ul class="text-align-start vertical-align-baseline"><li><a href="" rel="follow" target="_self" class="article-link vertical-align-baseline">China official Manufacturing PMI 48.0 (expected 49.0) & Services 46.7 (expected 48.0)</a></li><li><a href="" rel="follow" target="_blank" class="article-link">More on China's Nov. PMI plunge into deep contraction for both manufacturing and services</a></li></ul><p>Summary points made in the report commentary … pretty dire …. </p><ul><li>in contractionary territory for the fourth consecutive month</li><li>Both manufacturing supply and demand continued to shrink last month due to the spreading Covid outbreaks and subsequent containment measures</li><li>subindices for output and total new orders remained below 50 for a third and fourth straight month respectively, with output weakening at a faster pace</li><li>Due to Covid controls at home coupled with rising recession risks overseas, the reading for new export orders remained in contraction for the fourth consecutive month</li><li>Employment took a dive … The related subindex remained in contractionary territory for the eighth month running, and logged its worst performance since February 2020</li><li>The gauges for input and output prices diverged for the second consecutive month. As prices of bulk <a href="" target="_blank" id="da4553bf-21d1-405c-bc80-d431ff06ffd0_1" class="terms__main-term">commodities</a> like metals and <a href="" target="_blank" id="e1f1b115-23d2-48c8-98c8-24024dada457_1" class="terms__secondary-term">crude oil</a> ticked up, input costs rose at a slightly faster pace. Given the weakness in demand, it was difficult for manufacturers to pass on their rising input costs</li></ul>

This article was written by Eamonn Sheridan at

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