China's November manufacturing PMI drops to 50

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China's manufacturing activity slowed further in November, but with improved structure, according to data from the National Bureau of Statistics (NBS).

The official Purchasing Managers' Index (PMI) came in at 50 on Friday, slightly down from 50.2 in October. A reading above 50 indicates expansion, while a reading below reflects contraction.

NBS analyst Zhao Qinghe said in a statement released with the data that manufacturing production has been stable, as the production sub-index, which eased slightly to 51.9 in November from 52 in October, remained above the level marking the divide between expansion and contraction.

The majority of manufacturing industries saw their factory growth remain within the expansion scope, Zhao said. PMI for industries such as food and beverage, refined tea, textile and apparel, medicine, railway and aerospace equipment, electrical machinery and equipment have been above a high level of 52.

Zhao also pointed out that as China's industrial upgrade advances, consumption continues to play a fundamental role in boosting economic development.

The PMI of equipment manufacturing, high-tech manufacturing and consumer goods manufacturing stood at 50.5, 51.7 and 51.6, respectively, all above the average level and higher than the previous month.

As a result of factors like pollution control during the heating season in some areas, the PMI of high-energy-consuming industries including petroleum processing, chemical raw materials and metal smelting dipped to 48.4, below the overall level.

The new orders sub-index, an indicator of future activity, declined to 50.4 from 50.8, indicating a slower pace in companies' new order growth.

New export orders shrank for a sixth straight month. The sub-index rose marginally to 47 from 46.9 in October, with import orders falling to 47.1 from 47.6 in October. Zhao cited the slowing global economic recovery and uncertainties caused by trade frictions for the slump.

Non-manufacturing sector steadies

Friday's data also showed that China's non-manufacturing sector remained steady in November, with the PMI for the sector standing at 53.4, down from 53.9 in October.

The service sector, which accounts for more than half of the country's GDP, maintained stable growth, with the sub-index measuring business activity in the industry coming in at 52.4 in November, higher than 52.1 last month.

Thanks to sales promotion during the Singles' Day online shopping festival, rapid expansion was seen in sectors including postal service, internet software and telecommunications, where the readings were all above 56, the NBS said.