Chinese industry is growing the fastest in over three years. Small service providers are finding it a little more difficult to recover from the pandemic. The upswing is also continuing in Japan. The recession is over.
Dhe Chinese industry continued its recovery course in November. China’s factory activity grew at the fastest pace in more than three years in November. The official purchasing managers’ index for manufacturing (PMI) rose from 51.4 to 52.1 in October, data from the national statistics bureau NBS showed on Monday. It was the highest PMI value since September 2017. The 50-point mark separates growth from contraction on a monthly basis.
China’s huge industrial sector is steadily returning to pre-pandemic activity levels among key trading partners, regardless of the second corona wave. The service sector also grew in November. The official purchasing managers’ index (PMI) for non-manufacturing companies rose from 56.2 to 56.4 in October, according to data from the NBS. China’s service sector includes many smaller private companies that are recovering more slowly from the corona pandemic than manufacturing. Discount campaigns around “Singles Day” on November 11th, however, resulted in a strong business with online purchases in November and strengthened confidence in small and medium-sized companies.
Japanese industrial production is also continuing to grow after the severe setbacks as a result of the corona pandemic. The output of the world’s third largest economy, ahead of Germany, rose by 3.8 percent in October compared to the previous month, as the government announced on Monday based on preliminary data. The moderate recovery in production thus continued for the fifth month in a row. In September, Japan saw production increase by 3.9 percent, according to revised data. According to a survey by the government, Japan’s industrial groups are expecting a further increase in production of 2.7 percent in November, before a decline of 2.4 percent in December.
The Japanese economy suffered a record decline in the wake of the Corona crisis. It is true that the Asian economic power has now left the severe recession behind. However, experts reckon it will be years before Japan will fully recover from the effects of the global pandemic.