By Gina Lee

Investing.com – China recorded a , the first in three months, as a surge in raw material prices and power rationing both eased.

National Bureau of Statistics (NBS) data released earlier in the day showed that the was at 50.1 in November, higher than the 49.6 figure in forecasts prepared by Investing.com and the previous month’s 49.2 figure.

The was at 52.3, higher than the previous month’s 52.4 figure. Both were over 50, a sign of growth.

Zhao Qinghe, a senior statistician at NBS, stated that a series of measures and policies recently implemented to stabilize the market and ensure energy supply have been shown to work.

“Power rationing eased in November but prices for certain raw materials fell significantly. This led to an expansion of manufacturing PMI.”

Nie Wen, Hwabao Trust economist at Hwabao Trust, told Reuters that although the PMI in manufacturing may not reach 50, it could be held close to the mark for months ahead due to factors like power restrictions, high raw materials prices, and weaker consumer demand.

Due to the Beijing Winter Olympics in February 2022, new restrictions have been placed on northern China’s manufacturing.

The latest COVID-19-related lockdowns in the service sector have had a negative impact on activity. However, construction activity has seen an improvement.

As China’s economic recovery from COVID-19 continues to slow down, the GDP is set to slow down further in the fourth quarter of 2021. Premier Li Keqiang admitted that China’s economy is facing new downward pressures, but urged authorities not to be too aggressive in their policy response.

Investors await Caixins and PMIs later this week.