China’s industrial activity contracted in November for the eighth consecutive month, a sign that the world’s second-largest economy remains weak despite a trade truce with the United States, according to official figures released Sunday.
The management purchasing index (ICG), a key indicator of industrial health, reached 49.2 points in November, according to the National Statistics Office (ONE). The figure was higher than the 49 recorded in October, but remained below the 50-point mark that separates expansion from contraction.
The slight increase comes after the presidents of China, Xi Jinpingand the United States, Donald Trumpwill meet in October in South Korea and agree to a truce in their trade war.
Trump pledged to halve his 20% tariffs on Chinese products, while Xi agreed to suspend certain restrictions on the export of rare earths for one year.
Meanwhile, the Non-manufacturing ICGwhich measures activity in sectors such as services and construction, ranked in 49.5 points in Novemberher first contraction in almost three years.
Despite signs of weakness, the Chinese economy is on track to reach its peak this year. economic growth goal of 5% of GDP.
