Markets Await Slowdown of China's Manufacturing Activity in November

Forex News

China will publish the official manufacturing and services PMI surveys on November 30. The Caixin manufacturing PMI will come out on December 3 and its services PMI on December 5. Analysts forecast, that China's manufacturing activity will slow for a second straight month in November amid cooling demand at home and the threat of higher US tariffs.

The official manufacturing Purchasing Managers' Index (PMI) for November is expected to come in at 50.2. That would mark the second month of only marginal expansion, after growth hit a 27-month low of 50.2 in October.

The Caixin/Markit Manufacturing Purchasing Managers' index (PMI), which focuses more on small and mid-sized firms, is expected to show growth stalled in November, falling to 50 in November from 50.1 in October. The 50-mark divides expansion from contraction on a monthly basis.

A weak factory reading would reinforce the consensus view that China's policymakers will roll out more support and stimulus measures soon on top of a raft of recent initiatives. The China’s economy grew by a slower-than-expected 6.5% in the third quarter, its weakest pace since the global crisis.