- China's NBS manufacturing PMI improved slightly in November to 50.6 from 50.2 in October and reached its highest level since April. The details were relatively strong with both new orders and export orders improving and the new order-inventory balance also improving further. Other manufacturing PMIs released this morning across Asia are also encouraging with most countries reporting improvements in new orders and export orders.
- In line with recent hard data, the manufacturing PMIs suggest that the Chinese economy has stabilised and is now recovering moderately. With the exception of Japan, this is also increasingly evident across the rest of Asia.
The manufacturing PMI published by China’s National Bureau of Statistics (NBS) improved slightly to 50.6 in November (consensus: 50.8, DBM: 50.9) from 50.2 in October. This was the third month in a row with an improvement and the NBS manufacturing PMI is now at its highest level since April. The details were also relatively strong with new orders improving from 50.4 to 51.2 and export orders improving from 49.3 to 50.2.
The finished goods and raw materials inventory components both increased slightly but remained substantially below 50, suggesting that inventory cuts are still weighing on activity. The new order-inventory balance improved slightly in November and the overall improvement trend in the new order-inventory appears to remain intact.
China’s final HSBC manufacturing in November showed an improvement to 50.5 (revised up from 50.4) from 49.5 in October. New orders in the final reading for November was revised up to 50.8 from 50.1 in the flash estimate but still showed a marginal decline from 51.2 in October. As the finished goods inventory component in November was revised down to 48.8 from 49.5 in the flash estimate, the final reading no longer shows the substantial deterioration evident in the flash estimate and, in line with the NBS PMI, is consistent with an improving trend in the new order-inventory balance.
Other manufacturing PMIs released across Asia this morning are, on balance, also encouraging. The manufacturing PMI in South Korea improved from 47.4 to 48.2, in Vietnam it improved from 48.7 to 50.5, and in India it improved from 52.9 to 53.7. Taiwan’s manufacturing PMI declined slightly from 47.8 to 47.4 and Indonesia’s manufacturing PMI declined from 51.9 to 51.5. In all countries with the exception of Taiwan, there were improvements in both the new order and export order components.
To Read the Entire Report Please Click on the pdf File Below.