China’s Caixin PMI Services dropped to 51.5 in November from 52.0, missing market expectations of 52.5, reflecting a slowdown in the sector’s expansion. However, PMI Composite rose to 52.3 from 51.9, supported by improvements in manufacturing.
Wang Zhe, Senior Economist at Caixin Insight Group, highlighted the challenges facing the economy. He noted that while the downturn appears to be “bottoming out,” the recovery requires “further consolidation.” Persistent contraction in employment underscores that the impact of economic stimulus has yet to translate into labor market gains, with businesses hesitant to expand their workforce.
Wang also stressed the importance of monitoring the “consistency and effectiveness” of additional stimulus measures. The economy continues to face “structural and cyclical pressures,” compounded by the risk of “continued accumulation of external uncertainties,” necessitating “sufficient policy buffers.”
