(Yicai Global) Nov. 30 -- The China Manufacturing Purchasing Managers Index rose for the ninth consecutive month in November to 52.1 from October’s 51.4, the highest level in three years, as new orders picked up and ex-factory prices surged.

The production index, one of five sub-indices that make up the manufacturing PMI, was 54.7 percent this month, up 0.8 percentage points from October, according to data released today by the National Bureau of Statistics. It has remained above 53 for nine straight months, indicating that factory output is active.

Significantly, the new order index was up 1.1 percentage points to 53.9 in November, the highest level in two years, showing that demand is bouncing back.

The manufacturing PMI rebounded in November and the sub-indexes generally rose, demonstrating a clear overall recovery of the manufacturing industry, said Zhang Liqun, guest analyst with the China Federation of Logistics and Purchasing.

China's economic recovery and the growth of both market demand and supply accelerated in November, said Wen Tao, an analyst at the China Logistics Information Center. Although the pandemic is still spreading, China’s economy has great potential and resilience and will continue to recover faster with further policy efforts, he added.

Both November’s ex-factory price and purchase price indexes grew at the fastest rate since 2018. The ex-factory price index jumped 3.3 percentage points to 56.5 from the month before and the purchase price index leapt 3.8 percentage points to 62.6.

The increase in the ex-factory price and purchase price indexes in November was large, showing that the current market circulation is good and the price transmission mechanism is operating well, Wen said.

Foreign Trade

As for overseas trade, both imports and exports improved. The new export order index gained 0.5 percentage points to 51.5 in November, another two-year high. The import index rose 0.1 percentage point to 50.9, managing to keep above 50, which indicates expansion, for three consecutive months.

China’s exports continued to rise in November, said Wen. The Covid-19 pandemic has led to sustained growth in demand for epidemic prevention supplies and office equipment in foreign countries. It has also affected production in some countries, resulting in more orders for China.

Small Businesses

The PMI of small companies finally clawed its way back into expansion territory in November, ringing in at 50.1, up 0.7 percentage points from October. Medium and large-sized firms kept up the momentum with scores of 52 and 53, up 1.4 and 0.4 percentage points respectively.

The survey shows that small companies’ operations have improved this month, said Zhao Qinghe, a senior statistician at the NBS’ Service Industry Survey Center. Only 42.3 percent of small businesses reported that they were short of capital, a drop from 44.9 percent a month earlier and the lowest level all year, showing that financial relief policies were having an effect.

Editor: Kim Taylor