PMI Photo:VCG

The Caixin China General Manufacturing Purchasing Managers' Index (PMI) reached 51.5 in November, up 1.2 points from the previous month, marking the second straight month of manufacturing expansion and the highest level since July, according to data released on Monday.

A reading above 50 indicates an expansion in manufacturing activity, while a number below that reflects a contraction.

The improvement in PMI shows that China’s economic recovery accelerated in November as the government’s stimulus package since September has taken effect, analysts said.

The data showed that both supply and demand in the manufacturing sector gained pace in November. The manufacturing production sub-index reached its highest level since July 2024, while the new orders sub-index reached its highest levels since March 2023. Surveyed companies reported that the improvements in demand fundamentals and the launch of new products have supported the growth of market orders.

External market demand also revived, with the new export orders index rebounding significantly in November, reaching a nearly seven-month high.

The Caixin survey showed the market sentiment across the Chinese manufacturing sector improved in November, rising to its highest level since March, the data showed. 

The surveyed enterprises pinned their hopes on better economic conditions and government policies to back up their sales in the year ahead.

“Since late September, the synergy of existing pro-growth policies and additional stimulus measures has constantly acted to spur market demand, which is reflected in the improved economic performance since October. Positive factors have increased, which together contributed to an accelerated economic recovery in November,” Wang Zhe, senior economist with Caixin Insight Group, wrote in a note.

The Caixin reading followed the release of China's official manufacturing PMI released by the National Bureau of Statistics (NBS) on Saturday, which came in at 50.3 in November, up from 50.1 in October.

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