China’s manufacturing activity grew for the second consecutive month, signalling economic stabilization following government stimulus efforts.

The Caixin manufacturing PMI rose to 51.5 in November, the highest since June, surpassing the forecast of 50.6 and up from 50.3 in October, as per Caixin and S&P Global.

The data indicates that Chinese exports continue to drive the recovery of $18 trillion in the economy, despite concerns over potential US tariffs under President-elect Donald Trump.

Official reports showed a slight improvement in manufacturing, but the construction and services sector dropped to 50, signalling stagnant growth.

Front-loading may boost manufacturing for a few months until US tariffs take effect, potentially soon, according to Michelle Lam, Greater China economist at Societe Generale SA.

Stockpiling by customers drove new orders in November to their fastest growth since February last year, while output price inflation hit a 13-month high, according to the Caixin survey.

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