Factory activity expanded modestly for a second straight month in November, an official survey showed, adding to a string of recent data suggesting a blitz of stimulus is finally trickling through the world’s second-largest economy just as Donald Trump ramps up his trade threats.
The National Bureau of Statistics purchasing managers’ index (PMI) yesterday rose to 50.3 – a seven-month high – from 50.1 in October.
The mood in China’s manufacturing sector has been depressed for months due to tumbling producer prices and dwindling orders, but two months of positive PMI readings suggest the stimulus announcements are improving sentiment.
That said, fresh headwinds from additional US tariffs could threaten China’s industrial sector next year and pour cold water over any early optimism in the manufacturing sector.
While there have been some signs that Chinese policymakers’ latest moves may be lending support to the ailing property market, which has weighed heavily on domestic demand, officials are now in a race to limit the economy’s vulnerabilities ahead of a second Trump presidency.
President-elect Trump said on Monday he would impose a 10% tariff on Chinese goods so that Beijing does more to stop the trafficking of Chinese-made chemicals used in the production of fentanyl. He also threatened tariffs in excess of 60% on Chinese goods while he was on the campaign trail. — Reuters
