China PMIs lift

From China’s NBS over the weekend comes the PMIs:

In terms of enterprise size, the PMI of large enterprises was 50.9% , an increase of 1.0 percentage point from the previous month ; the PMI of medium-sized enterprises was 49.5% , an increase of 0.5 percentage points from the previous month ; the PMI of small enterprises was 49.4% , an increase of 1.5 percentage points from the previous month .

From the perspective of the classification index, of the five classification indexes that constitute the manufacturing PMI , the production index, new order index, and supplier delivery time index are higher than the threshold, while the raw material inventory index and the employment index are lower than the threshold.

The production index was 52.6% , an increase of 1.8 percentage points from the previous month and higher than the threshold, indicating that the production expansion of manufacturing enterprises has accelerated.

The new orders index was 51.3% , an increase of 1.7 percentage points from the previous month , and returned to the threshold, indicating that the manufacturing market demand has increased.

And services:

In November 2019 , the non-manufacturing business activity index was 54.4% , an increase of 1.6 percentage points from the previous month , indicating that the non-manufacturing industry continued to maintain a growth trend and the growth rate accelerated.

In view of different industries, the service industry business activity index was 53.5% , which was 2.1 percentage points higher than the previous month , and the service industry boom picked up. In terms of industries, the business activity index of the postal industry, accommodation industry, telecommunications, radio and television, and satellite transmission services, money and financial services, capital market services, and insurance industries is located in a high economic range above 58.0% , and the total business volume has grown rapidly. The business activity indexes of railway transportation, road transportation, catering, and real estate are in the contraction range. The business activity index of the construction industry was 59.6% , a drop of 0.8 percentage point from the previous month , and was located in a higher economic range.

The new orders index was 51.3% , an increase of 1.9 percentage points from the previous month , and returned to the expansion range, indicating an increase in demand in the non-manufacturing market. In view of different industries, the new orders index of the service industry was 50.5% , an increase of 2.1 percentage points from the previous month ; the new order index of the construction industry was 56.0% , an increase of 1.2 percentage points from the previous month.

A better month despite still poor external demand. Sustainable? Doubtful.

David Llewellyn-Smith
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