By Gina Lee

Investing.com – China’s factory activity in November, with subdued demand, as well as rising unemployment and prices, weighing on manufacturers.

An earlier release of the reflected growth. The 49.9 was just under the 50-mark. The 50.6 reported figure in October was also lower than that of 49.9, and the forecasts by Investing.com predicted 50.5.

The findings from Caixin’s survey, which focuses more on small firms in coastal regions, contrasted with Tuesday’s data from the National Bureau of Statistics. According to the data, the 50.1% was higher than the 52.3.

“Supply in the manufacturing sector recovered, while demand weakened. Relaxing constraints on the supply side, especially the easing of the power crunch, quickened the pace of production recovery,” Caixin Insight Group senior economist Zhe Wang said in a statement accompanying the data release.

“But demand was relatively weak, suppressed by the COVID-19 epidemic and rising product prices.”

China’s initial economic recovery was impressive, but a slower manufacturing sector, property market woes, and COVID-19 epidemics all led to a decline.

Investors predict that a slowdown in gross domestic product recorded for the third quarter of 2021 to continue in the year’s last quarter.

Caixin’s survey showed also that November production increased for the first-time in four months while new orders dropped back to contraction.

Caixin’s Wang urged policymakers to focus on supporting small companies and pay attention to problems including deepening unemployment, limited household income growth, and weak purchasing power.

“In addition, the prices of some raw materials remained high. The high cost pressures facing enterprises are not going away. Policymakers should treat inflation seriously,” he added.

The is expected to be released later in the week.