Domestic and foreign demand drops. Optimism about the future does as well. The government imposes limits on heavy industries and road transportation to reduce pollution.
Beijing (AsiaNews/Agencies) – The November Manufacturing Purchasing Managers' Index (PMI) dropped from 51 in October to 50.8 in November, the lowest reading in five months, Caixin Global reported.
The PMI is an indicator of the health of an economy: above 50 indicates expansion, below 50 points to contraction.
China’s official manufacturing PMI rose to 51.8 in November from 51.6 the previous month, but point to a decline.
Although output grew in November, new orders grew more slowly due to lower foreign and domestic demand. Some analysts see this is a sign that puts a dent in any optimism about the future.
Lower growth in November follows government restrictions on output by many heavy-industry sectors, such as steel and coal, and curbs on road transportation, which pollute more than rail transport, in an attempt to reduce air pollution in northern regions over the winter.