Chinese PMIs shrink further in November as zero-COVID weighs

By Ambar Warrick Chinese economic activity fell below expectations in November, data showed on Wednesday, as disruptions caused by COVID-related lockdowns continued to chip away at growth and worsened sentiment among manufacturers.

The official manufacturing purchasing managers index (PMI) fell to 48.0 in November, government data showed, missing expectations for a reading of 49.0 and slipping well below last month’s reading of 49.2. 

Sectors outside manufacturing saw an even bigger contraction, with the non-manufacturing PMI reading 46.7 for November, missing expectations of 48 and falling from last month’s reading of 48.7.

This saw overall business activity in the country contract further, with the composite PMI reading 47.1 for November, down from last month’s reading of 49.0.

A PMI reading below 50 indicates contraction in the sector. 

Chinese manufacturing activity, which is a bellwether for the country’s economy, has declined steadily in the fourth quarter as rising COVID-19 cases caused more disruptions. This trend largely cut short a brief rebound seen in the third quarter. 

China is now grappling with a record-high daily increase in COVID-19 cases, which has spurred lockdown measures in several economic hubs. 

Weakening economic trends are now putting the country's overall business activity under pressure. While strength in the services sector had initially helped keep overall business activity in expansion territory, this trend appears to be reversing. 

China was also rocked by unprecedented civil disobedience over the past week, as citizens in several major cities protested against the government’s strict zero-COVID policy.

The policy is at the heart of China’s economic woes this year, and has severely disrupted business activity with a series of lockdown measures. 

The weak PMI reading, which has now shrunk for a second consecutive month, likely heralds a dismal GDP reading for the fourth quarter. 

But worsening economic trends, coupled with the recent protests, have driven widespread speculation that the Chinese government will be forced into scaling back its zero-COVID policy in 2023. Chinese markets rallied in recent sessions on that notion.  

The yuan rose 0.2% on Wednesday despite the weak reading, as traders bet on a Chinese reopening. 


Begin trading today! Create an account by completing our form

Privacy Notice

At One Financial Markets we are committed to safeguarding your privacy.

Please see our Privacy Policy for details about what information is collected from you and why it is collected. We do not sell your information or use it other than as described in the Policy.

Please note that it is in our legitimate business interest to send you certain marketing emails from time to time. However, if you would prefer not to receive these you can opt-out by ticking the box below.

Alternatively, you can use the unsubscribe link at the bottom of the Demo account confirmation email or any subsequent emails we send.

By completing the form and downloading the platform you agree with the use of your personal information as detailed in the Policy.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 75.5% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

Back to top

Office network
  • London Office
    One Financial Markets 

    1 Finsbury Market
    EC2A 2BN
    United Kingdom

    T:  + 44 ( 0 ) 203 857 2000
  • Dubai Office
    One Financial Markets 
    OT19-39 Central Park Tower
    Dubai International Finance Centre
    United Arab Emirates
    T: + 971 44 22 888

One Financial Markets is the trading name of Axi Financial Services (UK) Ltd, a company registered in England with company number 6050593. Axi Financial Services (UK) Ltd is authorised and regulated by the Financial Conduct Authority in the UK (under firm reference number 466201) and the Financial Sector Conduct Authority in South Africa (with FSP number 45784).

The information on this site is not directed at residents of the United States, Belgium, Poland or any particular country outside the UK and is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation. is owned and operated by Axi Financial Services (UK) Ltd.

Award winning broker
We have been presented with a number of awards that recognise the quality of our service and dedication to our clients :

Best FSA Regulated Broker
Saudi Money Expo

Best Education Product
Saudi Money Expo

Best Broker - Online Trading
IAIR Awards

Best Institutional Broker
Saudi Money Expo

Best FX Services Broker
CN Forex

Top International
FX Broker 2015

Saudi Money Expo

Broker of the Year
Online Trading – Middle East

IAIR Awards

Best Forex
Customer Service 2018

JFEX Awards

We accept the following payment methods: