PMI Photo:VCG

The purchasing managers' index (PMI) of China's manufacturing industry reached 50.3 in November, up from 50.1 in October, above the 50-mark separating growth from contraction, indicating a steady acceleration in manufacturing sector expansion, according to data from the National Bureau of Statistics (NBS) released on Saturday.

The 50.3 reading exceeded the 50.2 forecast in a Reuters poll. The manufacturing PMI has now rebounded for three consecutive months and expanded for second month.

The moderate acceleration in expansion of manufacturing in November reflects improvements in both order demand and supply dynamics, as well as stronger business confidence, according to Zhao Qinghe, senior statistician of NBS.

The effects of domestic macroeconomic policies have become increasingly evident, with both supply and demand sides showing sustained recovery, and domestic demand momentum is strengthening, Zhou Maohua, an economist at China Everbright Bank, told the Global Times on Saturday.

The overseas consumption peak season and stockpiling in advance are contributing to an uptick in overseas orders, Zhou added.

China's official November composite PMI, which includes both manufacturing and services activity, remained at 50.8 in November, the same level as October, reflecting ongoing expansion in overall production and business activities among Chinese enterprises, according to Zhao.

The non-manufacturing PMI, which includes construction and services, stood at 50.0, declined slightly 0.2 percentage points from the previous month, NBS data showed.

The existing and incremental policies still hold considerable potential to be fully realized. Based on the expedited implementation of key projects, the construction sector is expected to gradually improve, according to Zhou.

Global Times