The global index has now been above the 50 mark that separates growth from contraction for three years.
Advertisement
Meanwhile, Caixin had a 48.6 PMI reading for China in November, slightly up from 48.3 in October, citing a pick-up in new export business and output, the Chinese media group said in a statement released on Tuesday. A reading above 50 signals expanding activity while anything below indicates shrinkage.
The sub-index for new orders in services climbed over 50 to 50.3, up 1.4 percentage points from October, showing a demand rally in the service market, said Zhao.
Japanese manufacturing expanded at the fastest pace in 20 months in November, with output and new export orders picking up.
The official index, compiled by the Chinese Federation for Logistics and Purchasing, includes more of the country’s larger, state owned enterprises while the Caixin survey is weighted to smaller, private enterprises in China’s manufacturing industry, which employs tens of millions.
China’s Premier Li Keqiang said last week that China was on track to reach its economic growth target of about 7 per cent this year, and that the economy was going through adjustments to maintain reasonable medium- to long-term growth.
By contrast, the Reserve Bank of Australia (RBA) is expected to hold rates steady at 2 percent at its policy meeting on Tuesday, with an announcement expected to come at 0330 GMT.
“Mirroring the trend for new orders, production increased at the softest pace in the current 25-month sequence of expansion”, it added.
The ECB is also highly likely to cut its deposit rate further into negative territory, effectively increasing the amount banks have to pay to park money overnight.
It is understood that the strength of the sterling and new business wins from the United Kingdom helped to contribute to the growth of new exports orders. However, the rate of growth was the weakest over this period.
The euro is strong to start off the month of December at $1.419 Canadian. The report said that stocks of purchases declined for the first time in one-and-a-half years, which can be associated with falling quantities of inputs bought. However the non-manufacturing PMI scaled up to 53.6 in the month from 53.1 in the previous month.
Advertisement
Cost pressures also remained strong amid an unfavourable exchange rate that led to increased raw material costs, while the rate of inflation was sharp although it eased since October. “Companies reported higher prices paid for metals, textiles and food”, the survey said.
