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Caixin: China’s Manufacturing PMI Fell Below 50 in November

Well-known Chinese financial site Caixin recently released its official Chinese Manufacturing PMI index number for November, which was 49.9. Caixin PMI was formerly known as HSBC PMI, which was a well-respected economic indicator widely monitored globally by financial institutions. Although the power shortage has eased, due to the rebound of the Covid-19 pandemic and weak domestic and foreign demand, the Caixin China Manufacturing Purchasing Managers Index (PMI) fell into a contraction zone in November. Manufacturing supply has recovered significantly, but demand is weak. The new export order index and employment index have both fallen into the contraction range for four consecutive months. Though the price index has fallen sharply, yet Inflation pressure still cannot be ignored. Small manufacturing company rescue is still the focus of future policy. The interviewed companies reported that suppliers’ inventory levels remain low. Logistics delays and supply chain delays continue. Adequate attention should also be paid to the deterioration of employment and the weaker consumer purchasing power.

Source: Caixin, December 1, 2021