China’s manufacturing sector grew at fastest pace since 2017
China’s manufacturing sector expanded in November at the fastest pace since 2017, while services sector’s growth hit the highest in over eight years, signaling that economic recovery from coronavirus pandemic in the world’s second largest economy is accelerating and on track to completely recover from the drag of industry’s shutdown during lockdown.
Data released on Monday showed that China’s Manufacturing PMI rose to 52.1 in November from 51.4 in October, while Services PMI rose to 56.4 in November from 56.2 in October, hitting pre-pandemic levels.
The rise in manufacturing PMI suggests the recovery in industrial sector is gaining momentum and on track for solid growth in the fourth quarter but is still obstructed by inadequate demand, as recovery in most of world’s economies has slowed due to second wave of coronavirus.
Economists expect the sector to grow to 5.7% in Q4 from 4.9% in Q3 that marks an impressive recovery from the deep contraction earlier this year.
China’s economy is expected to grow around 2% in 2020, which marks the weakest in more than thirty years, but still much stronger than other major world economies that are struggling to bring virus outbreaks under control.