Dow Jones Newswires: China's manufacturing show reveals stunning restoration in November

BEIJING – An official measure of China's production unexpectedly rebounded on expansion in November, ending a two-month contraction due to a power shortage.

The official purchasing managers' index for manufacturing rose to 50.1 in November from 49.2 in October, the National Bureau of Statistics said Tuesday.

The result was better than the median of 49.6 forecast in a Wall Street Journal survey of economists, jumping over the 50 mark that separates an expansion in manufacturing activity from a contraction.

China's official manufacturing purchasing managers' index slipped below 50 in September and October due to a power shortage, prompting Beijing to step in to boost coal production and set price caps on coal.

"Power shortages eased in November and the prices of some commodities fell significantly, bringing the manufacturing PMI back into expansion," said Zhao Qinghe, a senior statistician at NBS.

The sub-index, which measures production, rose to 52 in November, compared to 48.4 in October.

However, the sub-indices measuring domestic and foreign demand remained in the contracting territory this month. The sub-index of total incoming orders rose from 48.8 in October to 49.4 in November. The sub-index, which measures incoming orders from abroad, rose to 48.5 compared to 46.6 in October.

Also released on Tuesday was the official non-manufacturing PMI, which includes both service and construction activities, down slightly from 52.4 in October to 52.3 in November.

The index has been dragged down mainly by the recent flare-up of COVID infections, the statistics bureau said.

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