Pic: Adobe Stock
Higher new work inflows, including from abroad, led to a solid rise in production.
Purchasing activity and inventory levels also rose as confidence about the year ahead grew.
Sentiment in the sector improved in the penultimate month of the year. The level of confidence was the highest since March. Firms signalled hopes that better economic conditions and government policies can support sales in the year ahead.
Employment levels declined despite a further accumulation of backlogged work. This was partially attributed to cost concerns as input price inflation accelerated in the month. Average selling prices also rose at a quicker pace as a result.
The headline seasonally-adjusted manufacturing purchasing managers’ index (PMI) rose to 51.5 in November, up from 50.3 in October.
Rising further past the 50 neutral mark, the latest data signalled that conditions in the manufacturing sector improved for a second straight month. The pace of growth was the fastest since June and above the series average.
Central to the latest advancement in manufacturing sector conditions was greater new business inflows. Incoming new orders placed with Chinese manufacturers increased amongst the fastest rate in three-and-a-half years.
A renewed rise in export orders also supported the rise in overall new orders.
Better underlying demand conditions, new product launches and stockpiling following the US election were amongst the reasons for the rise in new work, according to a release from S&P Global.
Production levels increased on the back of higher new work, rising at the quickest rate since June, with intermediate goods makers recording the fastest rate of growth among the monitored segments.
A second successive month of backlog accumulation was meanwhile observed in the Chinese manufacturing sector, though firms remained cautious about hiring.
Headcounts declined for a third straight month in November due to resignations and redundancies.
Average input prices increased at the fastest pace in five months as raw material costs were reported to have risen. In turn, firms shared their additional cost burdens with clients, leading to the quickest gain in selling prices since October 2023.
Export charges continued to fall marginally, however, with international pricing power hit by competition.
Fibre2Fashion News Desk (DS)