China’s industrial production expanded for the second month in a row economy

Industrial production in China expanded for the second month in a row in November, according to government data published today, Saturday. Which supports optimism Policymakers expect new stimulus measures to restore the second-largest economy The world is on the right track.

The official Purchasing Managers’ Index rose to 50.3 points in November, compared to 50.1 points in October, exceeding the 50 level that separates growth from contraction.

A gloomy atmosphere has prevailed over China’s manufacturing sector for months due to the decline in producer prices and orders, but the positive reading of the Purchasing Managers’ Index for two consecutive months indicates that stimulus announcements are working to improve confidence in the sector.

New headwinds resulting from additional US tariffs may threaten China’s manufacturing sector next year.

China’s exports rose more than expected last October, which analysts attribute to increased shipments from factories to large markets in anticipation of more tariffs from the United States and the European Union.

Motivational measures

During the recent period, Beijing has taken some of the boldest steps in years, aimed at stimulating growth in an economy that has not fully recovered from the repercussions of the Corona pandemic.

Since late September, China has unveiled measures aimed at promoting economic growth, including:

• Reducing interest rates.
• Eliminate restrictions on building homes.
• Reducing local government debt.

But experts pointed out that Beijing needs to take direct financial stimulus measures with the aim of increasing domestic spending and fully restoring the economy, in light of fears of a possible trade war with the United States after Donald Trump returns to the White House next January.

China seeks to achieve economic growth of approximately 5% this year, but observers doubt this.

Last October, the International Monetary Fund revised its growth forecast for the Chinese economy to 4.8% in 2024 and 4.5% in 2026.