For the eighth month in a row, China’s factory Purchasing Managers Index (PMI) contracted in November, and while that drop was slightly less than the previous month, anything under 50 is shrinkage in overall factory activity. Weak domestic demand, the ongoing US-China trade war and dismal property market have all contributed.
This comes as no surprise given that factory output and retail sales grew at their weakest pace in over a year in October. The overall economic sentiment remains negative, despite the government’s best efforts to boost consumer spending and general confidence. Factory activity is one of the key indicators for deciphering the overall situation.