China’s manufacturing PMI slides in November

China’s official manufacturing Purchasing Managers’ Index (PMI) fell to an eight-month low in November, which analysts say could add pressure on the Government to roll out more economic stimulus.

China’s National Bureau of Statistics announced on Monday the gauge of the manufacturing sector was down from October’s 50.8 to 50.3 in November. Readings above 50 indicate expansion in economic activity.

The index for new orders and that covering new export orders continued to wane to 50.9 and 48.4 respectively in November, against scores of 51.6 and 49.9 a month earlier, said the bureau. The government compiled the survey with the China Federation of Logistics and Purchasing.

Zhao Qinghe, an analyst at the bureau, said: “The falling of the new orders index shows the expansion of the market has yet changed but it lacks momentum to grow further.”

“The decline of the PMI of the medium-sized and small-sized enterprises is also one of the major reasons, leading to the fall of the manufacturing PMI [in November],” he added.

The PMI for the medium- and small-sized enterprises was 48.4 and 47.6 respectively, down by 0.7 and 0.9 percentage points from the previous month. Meanwhile, the reading of the large-sized firms was 51.6 in November, down from 51.9 in October.

Analysts expect China has to further ease its monetary policies to drive economic growth, after lowering interest rates last month for the first time in two years.