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Latest figures show Chinese manufacturing is on the up


Recent surveys of Chinese manufacturers suggest that confidence in the market and demand for product is improving. The private Caixin Index rose to 51.8 in November, up from 51.7 in October. The Caixin China General Manufacturing Purchasing Managers' Index is one of leading indicators used by investors to gauge the strength of the Chinese economy. The latest increase is the fourth straight monthly rise and the fastest expansion Chinese manufacturing has seen in three years.

In more good news for the Chinese market, the country’s official manufacturing PMI also showed growth last month, rising to 50.2 from 49.3. The unexpected increase is largely due to more new orders and export orders being placed by international companies. The difference between the Caixin survey and the official PMI is that the former looks at small, private factories while the latter tracks large, state-owned companies. 

Robert Carnell, economist at ING, noted that seasonal factors may have contributed to the improved numbers but “the overriding story is more likely one about the lift the economy is getting from fiscal stimulus through infrastructure spending.”

In a statement, Caixin offered their view on the improved situation, saying “the latest upturn in the health of the sector was partly supported by a further rise in new business placed with Chinese manufacturers,” They go on to say that “demand from overseas also improved, with export sales picking up for the second month in a row. New business rose strongly, which underpinned a further solid increase in production. Notably, new export orders saw the first back-to-back monthly rise for over a year-and-a-half.”

Why outsource your manufacturing to China?

There are many reasons why a business decides to outsource their manufacturing to China, mainly because of the excellent savings available, which are listed below. Whatever the reason, it’s important to minimise your risk by partnering with an experienced outsourcing company like China Outsourcing. With a team in the UK and on the ground in China, we eliminate the language and culture barrier and use our portfolio of trusted suppliers to provide you with a reliable service and quality parts – all at a fantastic price. 

•    Lower cost of living means big savings on labour
•    Trusted manufacturers deliver high quality goods
•    Take advantage of specialist equipment and know-how
•    Huge capability means you don’t have to invest in equipment, training etc. 
•    We take care of everything, from placing your order to delivery

China Outsourcing provides Chinese sourced high specification metal and plastic components and assemblies to both large & SME western customers. If you’d like to find out more about manufacturing in China, please don’t hesitate to contact our experts today on +44 (0)1202 606141.