China's factory activity expands for second month in November

China's factory activity continued to expand in November, marking a second consecutive month of growth, as positive trends accumulate in the world's second-largest economy.

The country's manufacturing purchasing managers' index (PMI) rose to 50.3 in November, up 0.2 point from October, according to data released by the National Bureau of Statistics (NBS) on Saturday. This marks the third consecutive month of growth and the second month above the expansion threshold of 50.

The rise in the headline PMI was largely driven by significant improvements in key sub-indices, including new orders, production expectations, and purchasing volumes. These components saw notable gains, while the production index showed steady growth. Collectively, the four main indices reached a seven-month high.

Zhang Liqun, an economist and special analyst at the NBS, noted that the continued increase in the manufacturing PMI indicates more evident signs of recovery from the economic downturn. He highlighted that recent incremental policy measures are helping to boost business confidence, with increasingly positive effects on the broader economy.

Meanwhile, the non-manufacturing PMI edged down slightly to 50.0, a decrease of 0.2 point from October. The composite PMI, which combines both manufacturing and non-manufacturing sectors, remained stable at 50.8, signaling a steady overall economic performance.

Looking at the broader economic landscape, analysts observed that the positive trends will continue. Market demand and supply are showing steady growth, with new economic drivers and consumer goods manufacturing accelerating. Business expectations are also on the rise, further reinforcing a trend of economic stabilization and recovery.

The data suggests that China's economy is gradually gaining momentum, with indicators pointing to strengthening growth prospects in the coming months, said the NBS.