China factory activity shrinks again as services sector slows

China factory activity shrinks again as services sector slows

China factory activity shrinks for the eighth consecutive month as policymakers weigh stimulus and structural reforms. China's factory activity shrank for the eighth month in November, while the services sector also cooled, underlining the challenges facing policymakers as they balance structural reforms with potential stimulus measures to revive domestic demand. The latest data from the National Bureau of Statistics (NBS) revealed that the manufacturing purchasing managers' index (PMI) edged up slightly to 49.2 in November from 49.0 in October, staying below the 50-point threshold that separates expansion from contraction. The reading was in line with a Reuters poll of analysts forecasting 49.2, highlighting persistent weakness in China’s industrial sector. The data points to ongoing struggles among manufacturers to maintain a post-COVID-19 recovery, particularly amid the lingering effects of trade tensions with the United States and global economic uncertainties. Output in the…

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