China S&P Global Rating Dog Manufacturing PMI 49.9 (expected 50.5)

China’s factory activity slipped back into contraction in November as momentum in production and domestic demand weakened, according to a private-sector survey released on Monday.

The RatingDog China General Manufacturing PMI, compiled by S&P Global, eased to 49.9 from 50.6 in October, missing forecasts and falling just below the 50 threshold that separates expansion from contraction.

The downturn aligns with official PMI data released Sunday, which showed the sector shrinking for an eighth straight month.

Production stalled in November as new orders softened, extending a sluggish domestic demand trend that has weighed on industrial profits. While firms reported brighter overseas demand, with export orders rising at the fastest pace in eight months following the October U.S.–China trade truce, the improvement was not enough to offset weakness at home. Export prices slipped slightly amid heavy competition.

The survey pointed to renewed strains inside factories: job shedding returned, purchasing activity contracted for the first time since June, and firms ran down inventories at the quickest pace in nearly a year. Stocks of both inputs and finished goods declined sharply as producers avoided holding excess inventory in the face of softer demand.

Input costs rose due to higher metal prices, but manufacturers held back from passing them on, instead offering further discounts that pushed output charges lower.

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Over the weekend:

• China’s factory and service PMIs contract again as holiday boost fades, recovery softens

This article was written by Eamonn Sheridan at investinglive.com.