The Caixin China Composite PMI™ data (which covers both manufacturing and services) signalled a solid increase in total business activity across China in November. The
Composite Output Index rose from 52.0 in October to 53.2, to indicate the steepest rate of growth for 21 months.
The upturn was driven by strong performances across both the manufacturing and service sectors. Notably, service providers registered a olid and accelerated increase in activity midway through the final quarter of 2019. This was highlighted by the seasonally adjusted Chinese
Services Business Activity Index rising from 51.1 October to a seven-month high of 53.5 in November. Companies widely commented on planned company expansions, new projects and an improvement in overall demand conditions. At the same time, goods producers noted a marked increase in production, with the rate of growth little-changed from October’s recent high.
The stronger increase in composite business activity reflected a further marked rise in new orders received by Chinese companies in November. In the service sector, new business expanded solidly overall, with the rate of growth picking up since October.
A steep increase in new work was also seen across the manufacturing sector, albeit one that was softer than seen in the previous month. At the composite level, new orders expanded at the fastest rate since February 2018.
David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal.
He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.
