China’s factory production fastest in three years, Corona to Expanding Economy!
China seems to have completely defeated Corona. China’s factory production has grown at the fastest pace in three years. China’s manufacturing purchasing managers (PMI) index has risen to 52.1 in November. This is the highest since September 2017.
From these figures, it seems that China is the first major economy in the world that has got out of the Corona crisis. Manufacturing Purchasing Managers (PMI) index above 50 means an increase in factory production; staying below 50 means a decrease in factory output. The National Bureau of Statistics of the Chinese government released its figures on Monday.
Economy is improving
This means that China’s economy is rapidly going back to the pre-Corona era. However, in many countries of the world, due to the ongoing transition and renewed lockdown, its export demand is expected to decrease.
China’s PMI was 51.5 in October, that is, there was an increase in manufacturing in October also. Not only this, if you look at the PMI sub-index, the activity index of small firms in November has been 50.1, while in October it was 49.4.
There will be good growth in GDP
Analysts at Nomura estimate that China’s GDP growth could reach 5.7 percent in the fourth quarter ending in December of this year, compared to 4.9 percent growth in the third quarter. However, the average for the whole year will be only around 2 percent, which will be the weakest in the last three decades. However, given the steep decline in GDP in the rest of the countries, this figure would be better said.
Increased demand for vehicles
It is interesting that Corona started from the city of Wuhan in China, but now China has almost completely overcome it, while the other countries are still struggling with it. Due to the high demand for trucks and electric vehicles, there has been good growth in vehicle sales in China. Similarly, the activities of the service sector have increased for the ninth consecutive month and in November it has been the fastest since June 2012. Railway, air transport, telecommunication and satellite transmission activity increased the most in November in China.
