Chinese manufacturing growth stalls in November
China's manufacturing sector stalled in November for the first time in two years, according to data released by the National Bureau of Statistics.
The official purchasing managers' index fell to 50 this month, coming in below October's 50.2 and expectations of no change, right at the level that separates contraction from expansion.
The services index ticked lower but remained firmly in expansion territory, coming in at 53.4 in November from 53.9 the month before, falling short of expectations for a trivial drop to 53.8.
Meanwhile, the composite index - which measures activity in both the manufacturing and services sectors - nudged down to 52.8 from 53.1 in October.
Pantheon Macroeconomics' chief Asia economist Freya Beamish said the decline in the manufacturing PMI was "to be expected, with the stimulus measures so far falling short and anyway unlikely to bolster activity until next year".
"Though the headline move was marginal, the price sub-indices - which are not included in the headline - dropped precipitously, with the output price index even falling below 50. This suggests PPI inflation will slow sharply in November, to easily below 3.0%, from 3.3% in October."
Oanda analyst Craig Erlam said the figures highlight the need for a trade agreement between the US and China.
"At this stage, it’s a question of how much pain the Chinese administration is willing to accept, having so far been sheltered by the weaker currency and front running of orders ahead of tariffs being implemented," he said.
US President Tump and China's Xi Jinping are due to meet for talks at the G20 meeting in Argentina later in the day.