China’s factory activity rebounded for the first time in seven months in November, data showed on Saturday, despite the looming threat of the new US tariffs in few weeks if Beijing and Washington fail to sign a partial trade deal.
The November’s Purchasing Managers’ Index (PMI) rose to 50.2, up from 49.3 last month, the National Bureau of Statistics said.
The reading is it is 50-points up than expected. A sub-index of new export orders climbed to a 7-month high at 48.8, but was still in contraction as demand wanes for China’s exports abroad.
The optimistic reading comes as US-China edge towards a partial deal to a trade war.
On Tuesday, top US and Chinese negotiators held phone talks and agreed to keep in touch over “remaining issues” for a “phase one” trade deal between the two countries media reports stated.
The two sides have slapped tariffs on nearly half a trillion dollars worth of goods in two way trade, and US President Donald Trump is threatening fresh tariffs in mid-December if there was no mini-deal.
Beijing has also implemented a number of measures to stimulate the economy, which expanded at its lowest pace in nearly three decades in the third quarter.
People’s Bank of China trimmed the interest rate it charges on funding to commercial lenders last week, to boost lending to credit-starved parts of the economy.
(With input from agencies)