China’s manufacturing Purchasing Managers’ Index (PMI) expanded to 52.1 in November 2020, compared to 51.4 a month ago, driven by production, new order demand — domestically and in the overseas market — along with rise in raw material prices, according to the National Bureau of Statistics.
Resumption of businesses and schools in the US and Europe led to new export orders, though the demand is still weak in November and is likely to remain low in December as well, due to COVID-19 related lockdown in some parts of the world.
The production index and new order index in November were 54.7 and 53.9, up by 0.8 and 1.1 points, respectively, over the prior month.
Forecast
The outlook for growth in China remains positive as the country expects GDP to grow by 7pc in 2021 along with continual economic growth from domestic demand.