Official purchasing managers' index for manufacturing and services sectors in China declines
The official purchasing managers' index for manufacturing and services sectors in China declined in November, providing negative signals regarding economic activity.
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The indicator for China's manufacturing and services sectors contracted in November, increasing expectations for additional government support for an economic recovery that is struggling to regain momentum.
According to a statement released by the National Bureau of Statistics on Thursday, the official manufacturing purchasing managers' index (PMI) fell to 49.4 in November, signaling contraction for the second consecutive month. Economists surveyed by Bloomberg had expected the index to reach 49.8. The index was recorded at 49.5 in October.
The non-manufacturing PMI, which measures the construction and services sectors, also fell to 50.2. The expectation for this data had been set at 50.9.
Zhou Hao, Chief Economist at Guotai Junan International, commented, "The PMI data released today will further increase expectations for policy support. Fiscal policy will be under the spotlight and take center stage throughout the coming year."