Negative signal on economic activity in China

The official purchasing managers’ index for China’s manufacturing and services sectors fell in November, signaling negative signals about economic activity. The indicator for China’s manufacturing and services sectors contracted in November, raising expectations for additional government support as the economic recovery tries to regain momentum. The official manufacturing purchasing managers’ index (PMI) fell to 49.4 in November, signaling a second consecutive month of contraction, according to the National Bureau of Statistics on Thursday. Economists surveyed by Bloomberg expected the index to reach 49.8. The index was recorded at 49.5 in October. The non-manufacturing PMI, which measures the construction and services sectors, also fell to 50.2. The expectation for this data was set at 50.9. “The PMI data released today will further increase expectations for policy support. Fiscal policy will be under the spotlight and in the forefront throughout the coming year,” said Zhou Hao, chief economist at Guotai Junan International.