November PMI data

The Caizin China Mfg PMI for November came in at 50.8 versus 50.9 estimate. This is also lower than the 51.0 reading from October.

  • The index shows modest pickup in output growth in November despite soft orders
  • It also shows input/ output price inflation still strong
  • The index was the lowest level in five months
  • tougher pollution measures weight on business confidence
  • firms were able to pass along slightly more of the price increases to their customers but still had to cut staff at the fastest pace in three months to reduce costs
  • optimism about when your business outlook cool for the third month in a row.
  • Firms said they expect stricter environmental policies and relatively subdued demand to weigh on growth
  • the confidence reading was among the weakest on record since early 2012
  • The Caixin report tends to focus more on small and midsize companies

The report suggests that growth may come down in 2018.