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China’s manufacturing sector saw a decline in November for the fourth consecutive month, new data from S&P Global showed on Thursday, as the country’s strict Covid control policies held back activity.
The latest Caixin China manufacturing purchasing managers’ index rose to 49.4 points in November from 49.2 points in October.
Coming in below the 50 point no-change mark, it indicates a modest downturn in China’s manufacturing sector.
This marks the fourth consecutive month that the manufacturing PMI has been in contractionary territory. However, the rate of decline was the slowest seen since August.
‘Both manufacturing supply and demand continued to shrink last month due to the spreading Covid outbreaks and subsequent containment measures,’ commented Wang Zhe, senior economist at Caixin Insight Group.
The economist added: ‘Employment took a dive. The related subindex remained in contractionary territory for the eighth month running, and logged its worst performance since February 2020. The Covid outbreaks made it difficult for some workers to return to their factory jobs, and businesses were less willing to hire due to weaker demand. ’
The manufacturing PMI is compiled by S&P Global from responses to questionnaires sent to a panel of about 650 private and state-owned manufacturers. The responses were collected between November 11 and 22.
The Caxin China general services PMI for November will be released on Monday.
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