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MIL OSI Translation. Region: Peoples Republic of China-China Statistical Information Network-Chinese-

The manufacturing purchasing managers’ index and non-manufacturing business activity index both rose in November

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——Zhao Qinghe, a senior statistician from the Service Industry Survey Center of the National Bureau of Statistics, interprets the China Purchasing Managers Index in November 2020

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   On November 30, 2020, the Service Industry Survey Center of the National Bureau of Statistics and the China Federation of Logistics and Purchasing released the China Purchasing Manager Index. In this regard, Zhao Qinghe, a senior statistician at the Service Industry Survey Center of the National Bureau of Statistics, explained.

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   As the overall planning of epidemic prevention and control and economic and social development have achieved remarkable results, my country’s economy has continued to recover steadily. In November, China’s manufacturing purchasing managers’ index, non-manufacturing business activity index, and comprehensive PMI output index were 52.1%, 56.4%, and 55.7%, respectively, which were 0.7, 0.2, and 0.4 percentage points higher than last month. The three major indexes were all located in The high point during the year was above the critical point for 9 consecutive months.

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   1. Manufacturing Purchasing Managers’ Index rose significantly

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   In November, the manufacturing PMI was 52.1%, and various sub-indices generally improved. The vitality of the manufacturing market was further enhanced, and the recovery growth was significantly accelerated. Among the 21 industries surveyed, the number of PMIs in the expansion range increased to 19, and the manufacturing boom has expanded. Main features of this month:

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   One is the synergy between production and demand. The production index and the new order index were 54.7% and 53.9%, respectively 0.8 and 1.1 percentage points higher than last month, and both rose to the high point of the year, and the difference between the two has narrowed month by month since June, dropping from 2.5 percentage points. 0.8 percentage points, indicating that the endogenous power of the manufacturing industry is continuously increasing and the supply and demand cycle continues to improve. From the perspective of the industry, the production index and new order index of industries related to high-tech manufacturing such as pharmaceuticals, electrical machinery and equipment, computer communication electronic equipment, and instrumentation are all higher than 56.0%, which is located in the higher prosperous range, and the release of production demand is accelerated. The overall leading role of the manufacturing industry has been further enhanced.

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   The second is the steady recovery of the import and export prosperity. This month’s new export order index and import index were 51.5% and 50.9%, which were 0.5 and 0.1 percentage points higher than the previous month. Both were highs during the year. They have been in the expansion range for three consecutive months, maintaining a monthly upward trend. Exports continued to recover.

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   Third, the price index has risen sharply. With the recent general rise in commodity prices and the acceleration of production and procurement activities by enterprises, the purchasing prices of raw materials and product sales in the manufacturing industry have increased significantly this month. The purchase price index and ex-factory price index of major raw materials were 62.6% and 56.5%, which were 3.8 and 3.3 percentage points higher than the previous month, and both were highs during the year. From the perspective of the industry, the price of upstream products has risen more obviously due to the demand of downstream industries. This month, the two price indices of petroleum processing, coal and other fuel processing, chemical raw materials and chemical products, ferrous metal smelting and rolling processing, non-ferrous metal smelting and rolling processing, etc. are all in the high range of 60.0% or more.

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  Fourth, the prosperity of large, medium and small enterprises has rebounded. The PMIs of large, medium and small enterprises were 53.0%, 52.0%, and 50.1%, respectively, 0.4, 1.4, and 0.7 percentage points higher than last month. They were all above the threshold, and the prosperity of enterprises of different sizes rebounded. The survey results show that the production and operation conditions of small enterprises have improved this month. The proportion of small enterprises reflecting capital shortage is 42.3%, which is 2.6 percentage points lower than last month. It is the lowest point since the beginning of this year. And the effects of policy measures such as financial support for small and micro enterprises have appeared.

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   The survey results also show that the recovery of the manufacturing industry is still uneven. Among them, the PMI of the textile, apparel and apparel industry has always been below the critical point this year, and the industry’s prosperity continues to be weak. In addition, 18.8% of export companies reported that they were affected by fluctuations in the renminbi exchange rate, which was 1.7% higher than last month. Some companies said that with the recent appreciation of the renminbi, corporate profits are under pressure and export orders have decreased.

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   2. Non-manufacturing business activity index rose slightly

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   In November, the non-manufacturing business activity index was 56.4%, 0.2 percentage points higher than the previous month, and stayed in a relatively high economic range above 55.0% for 4 consecutive months. The non-manufacturing sector continued to stabilize and recover.

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   The recovery of the service industry continues to improve. The business activity index of the service industry was 55.7%, which was 0.2 percentage points higher than last month. It has been in a relatively high economic range since September. On the whole, with the organic combination of normalized precision prevention and control and local emergency response, the consumer market has gradually recovered in an orderly manner, and the service industry has recovered at a steady pace. From the perspective of the industry, the business activity index of railway transportation, air transportation, telecommunications, broadcasting and television satellite transmission services, finance and other industries is in the high range of more than 60.0%, and the total business volume has increased significantly; at the same time, the business of real estate, ecological protection and environmental governance The activity index fell below the critical point, and the business climate declined. In terms of prices, the sales price index was 50.9%, 2.0 percentage points higher than last month. It rose above the threshold for the first time since the epidemic, indicating that the service industry market demand continues to pick up. In terms of market expectations, the business activity expectations index is 61.1%, which is higher than 61.0% for five consecutive months, indicating that most service industry companies are optimistic about the development of the industry.

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   The boom of the construction industry rebounded from a high level. The business activity index of the construction industry was 60.5%, 0.7 percentage points higher than last month. It returned to the high level of the business range, and the construction industry production activities accelerated overall. In terms of labor demand, the employment index was 54.4%, 1.2 percentage points higher than last month, reflecting the increase in labor demand by construction companies in order to meet production needs and ensure construction progress.

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   3. The comprehensive PMI output index rebounded for four consecutive months

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   In November, the comprehensive PMI output index was 55.7%, 0.4 percentage points higher than the previous month, indicating that the production and operation activities of Chinese enterprises have continued to accelerate, and the stable recovery trend has been further consolidated. The manufacturing production index and non-manufacturing business activity index that make up the comprehensive PMI output index are 54.7% and 56.4%, respectively.

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EDITOR’S NOTE: This article is a translation. Apologies should the grammar and/or sentence structure not be perfect.

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