China’s Factory Activity Contracts for 8th Month in November

China’s factory activity contracted for the eighth straight month in November, according to a recent official survey, underscoring challenges for the country’s economy despite the U.S.–China trade truce, the Associated Press (AP) reported.

The official manufacturing purchasing managers’ index (PMI) rose slightly to 49.2 in November from 49.0 in October. (Photo: CATL) 

The official manufacturing purchasing managers’ index (PMI) rose slightly to 49.2 in November from 49.0 in October, China’s National Bureau of Statistics said. The PMI is measured on a scale between 0 and 100, with a reading below 50 indicating contraction.

The result aligned with analyst expectations.

A U.S. tariff cut earlier this month could help Chinese exports regain competitiveness in the American market, but experts say it is too early to know whether exports have regained momentum following the trade truce.

President Donald Trump said the U.S. would cut its tariffs on Chinese goods after meeting Chinese leader Xi Jinping in South Korea on Oct. 30, raising some optimism over China’s export outlook.

However, a prolonged slump in China’s property market and falling home prices continue to hurt consumer confidence, and real estate investments remain low. Intense price competition in domestic industries including autos has also put pressure on many businesses.