China's Caixin PMI Nov: 5th consecutive month in expansionary territory

China' Caixin PMI came at 50.9 vs 50.8 exp and 51.2 last, which represents a 5th consecutive month in expansionary territory. The data followed improved China's government PMI of 51.7 vs 51 exp. 

Summary

Chinese manufacturing production continued to expand at a robust pace in November, despite the rate of growth easing since October’s five-and-a-half year peak. At the same time, companies reported a softer expansion of total new orders, while new export work was broadly stable after a slight fall in October. Meanwhile, cost-cutting initiatives underpinned a further fall in staff numbers, though the rate of job shedding was the slowest seen in a yearand-a-half. November also saw a sharp pick up in inflationary pressures, with both input costs and prices charged rising at the fastest rates since early-2011. 

Commenting on the China General Manufacturing PMI™ data, Dr. Zhengsheng Zhong, Director of Macroeconomic Analysis at CEBM Group said: “It marked the second-highest reading in two years, indicating the manufacturing industry continued to pick up steam. “Index readings for both output and new orders declined, but those tracking input and output prices rose at a faster pace to hit their highest levels in five years, pointing to further intensification of inflationary pressure."

“The Chinese economy continued to improve in November, although it lost some momentum compared to the previous month. Inventory and employment data also showed the foundation of growth is not solid yet and investors have to remain vigilant about the risk of a downturn in coming months" Dr. Zhengsheng Zhong added.