Despite recent glimmers of hope regarding a U.S.-China trade truce, new data from an official survey reveals a persistent challenge for the world’s second-largest economy. China’s factory activity has now contracted for an astonishing eighth straight month in November.
The official manufacturing purchasing managers index (PMI), a key indicator of industrial health, registered at 49.2. While this figure represents a slight rise from the previous month, it critically remains below the 50-point mark. A reading below 50 signifies contraction in the sector, underscoring the ongoing difficulties faced by Chinese manufacturers.
This prolonged period of shrinking factory activity highlights the deep-seated economic challenges confronting China. Even with a potential easing of trade tensions, the underlying pressures on its industrial base appear to be substantial. The implications of this sustained slowdown could ripple through global supply chains and economic forecasts, making it a critical metric to watch in the coming months.
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