China's factory activity unexpectedly picked up in November, growing for the first time in three months as raw material prices fell and power rationing abated, taking some pressure off a manufacturing sector grappling with soft demand.<\/p>\n

The official manufacturing Purchasing Manager's Index (PMI) was at 50.1 in November, up from 49.2 in October, data from the National Bureau of Statistics (NBS) showed on Tuesday.<\/p>\n

The 50-point mark separates growth from contraction. Analysts had expected it to come in at 49.6.<\/p>\n

The world's second-largest economy, which staged an impressive rebound from last year's pandemic slump, has lost momentum in the second half of the year as it grapples with a slowing manufacturing sector, debt problems in the property market and Covid-19 outbreaks.<\/p>\n

Analysts expect a further slowdown in fourth-quarter gross domestic product (GDP) growth from a 4.9% year-on-year rise in the previous quarter.<\/p>\n

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Reflecting the positive the headline PMI, a sub index for production rose to 52.0 in November from 48.4 in October, due to easing power rationing and the pullback in some raw material prices.<\/p>\n

New orders also fell at a slower pace, although November marked the fourth straight month of declines in customer demand.<\/p>\n

A sub-index for input prices stood at 52.9 in November, down significantly from 72.1 in the previous month.<\/p>\n

Factory gate inflation hit a 26-year high in October, further squeezing profit margins for producers and heightening stagflation concerns. As a result, policy sources say\u00a0China's central bank will likely move cautiously on loosening monetary policy to bolster the economy.<\/p>\n

Premier Li Keqiang last week acknowledged that\u00a0China's economy faces new downward pressures but said authorities should avoid an "aggressive" one-size-fits-all approach.<\/p>\n

The official non-manufacturing PMI in November eased to 52.3 from 52.4 in October, as the services sector took a hit from the fresh lockdown measures as\u00a0China\u00a0raced to contain the latest outbreak.<\/p>\n

China's official October composite PMI, which includes both manufacturing and services activity, stood at 52.2, up from October's 50.8.<\/p>\n

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