China's manufacturing activity grew at the fastest pace in more than three years in November as the country's economy continued to recover from the fall caused by the coronavirus outbreak.
Positive data released on Monday morning in the Asian session showed that the world's second-largest economy was on track for recovery, with recent production data showing the manufacturing sector is now at a pre-pandemic level.
China's manufacturing index rose 52.1 in November from 51.4 recorded the previous month. This is the highest PMI reading ever recorded since September 2017.
This increase was supported by improved supply and demand of Chinese-made goods as well as driven by imports and exports which continued to show recovery.
However, the recovery in manufacturing is said to be still not a restriction, according to Zhao Qinghe, a statistician bureau economist. Some businesses say profits and export orders are under pressure due to the stronger value of the yuan, he added.
Meanwhile, China also published PMI data for the services sector which also showed expansion this month from 56.2 in October to 56.4.
The economy is expected to grow by around 2% this year, the weakest in more than three decades but still much stronger than other major economies that are still struggling to control the current spread of coronavirus.
