China's private sector registered the strongest growth in more than three years in November, survey data from IHS Markit showed Monday.
The Caixin China Composite Purchasing Managers' Index was 52.9 in November, unchanged from October's 43-month high.
Services companies logged a solid increase in business activity, which offset a slight slowdown in the rate of output expansion across the manufacturing sector.
The services PMI climbed to a 16-month high of 53.1 in November from 52.4 in October, survey showed today.
New business growth in services weakened slightly in November. Manufacturers also reported a slower growth in new order books. At composite level, the amount of new work placed with Chinese businesses increased for the ninth month in a row, but at a moderate pace.
Services companies raised their staffing levels, while manufacturers cut their staff numbers. Consequently, at composite level, the fractional reduction in total employment was the weakest seen since the current sequence of job shedding began in June 2015.
Price pressures were relatively muted at service providers in November. In contrast, manufacturers saw a sharp and accelerated rise in total input prices. This contributed to a steep increase in composite input costs, which rose to the greatest extent since April 2011.
The rate of composite charge inflation quickened to a solid rate that was the fastest since February 2011.
"Price inflation, rather than a structural improvement, seems to be the main reason behind the recent recovery of the economy in general," Zhengsheng Zhong, director of macroeconomic analysis at CEBM group, said.
"The economy may remain stable in the fourth quarter, but it will still face significant downward pressure next year."
Further, data showed that optimism towards future growth prospects moderated to a 13-month low at services companies in November.
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June 12, 2026 17:14 ET Major central bank action was the focus this week in economic news. The European Central Bank became the first major central bank to move in response to the rising inflationary pressures in the backdrop of the conflict in the Middle East. In North America, the U.S. inflation and trade data as well as Canada’s central bank decision gained attention. The Chinese trade data was the main news in Asia.