China's manufacturing sector is showing signs of stabilization.
The official manufacturing Purchasing Managers’ Index released by the National Bureau of Statistics (NBS) recorded a better-than-expected reading of 50.2. It is the first reading since April to top the 50 mark that shows expansion - PMI readings above 50 indicate expansion, while readings below 50 indicate contraction.
Showing syncronized improvement, private survey Caixin/Markit manufacturing Purchasing Managers’ Index (PMI) came in at 51.8 on Monday, exceeding the expected reading of 51.4 and the October reading of 51.7.
"The latest upturn in the health of the sector was partly supported by a further rise in new business placed with Chinese manufacturers,” Caixin said in a statement. “A number of firms citing firmer underlying demand conditions. Demand from overseas also improved, with export sales picking up for the second month in a row. New business rose strongly, which underpinned a further solid increase in production."
The Caixin report is based on data compiled from monthly replies to questionnaires sent to purchasing executives in over 500 manufacturing companies.