China's manufacturing output unexpectedly increased this month, expanding for the first time in three months, as the increase in raw material costs and power rationing eased, alleviating some of the manufacturing sector's burden.
The Purchasing Managers' Index - a leading indicator of manufacturing activity - in the world's second-largest economy increased to 50.1, rising beyond the 50-point threshold that separates expansion and contraction after two months.
China's economy, which recovered well from last year's pandemic depression, has slowed in the second half of this year as it grapples with declining manufacturing, debt issues in the housing sector, and COVID-19 outbreaks.
Additionally, the newest statistics from the National Bureau of Statistics exceeded the 49.7 reading predicted by a Bloomberg survey of economists.
"A series of recent policy actions aimed at enhancing energy supply security and stabilizing market prices have yielded benefits," NBS senior statistician Zhao Qinghe said in a statement.
Market observers anticipate that the third-quarter downturn in gross domestic product (GDP) would extend into the fourth quarter, with demand being lackluster.
A variety of newly implemented policies and procedures aimed at ensuring energy supply and stabilizing market prices have been demonstrated to be effective, according to Zhao.
"Power rationing relaxed slightly in November, while the prices of certain raw materials fell dramatically, resulting in an increase in the manufacturing PMI," Zhao added.
A subindex for output increased to 52.0 in November from 48.4 in October, reflecting the positive headline PMI, while new orders declined at a slower pace, but November marked the fourth consecutive month of losses in customer demand.
Foreign trade has also improved as a result of the world economy's recovery and the approaching Christmas season, Zhao said.
China's non-manufacturing PMI, on the other hand, fell marginally to 52.3 from 52.4 in October, as the country battled new domestic coronavirus outbreaks.
Analysts anticipated a slowdown in growth following a recent outbreak of illnesses in late October that extended to 21 provinces and prompted widespread travel restrictions and closures.
Furthermore, there were hints of relief elsewhere in Asia, with Japanese manufacturing output increasing for the first time in four months in October, while facilities in other areas of the region restarted operations following COVID-19 shutdowns.
Capital Economics warned Monday that the new Omicron strain of the virus would put China's tough zero-COVID-19 policy to the test, adding that if it proved more difficult to contain than the Delta variety, officials would likely increase containment measures, further disrupting services.
