China SMEI: Manufacturing continues to recover – Standard Chartered

Amid all the pessimism surrounding Asian economies, mainly due to the trade war between the United States (US) and China, Standard Chartered came out with its analysis of manufacturing recovery into the world’s largest industrial player China.

Key quotes

“Headline SMEI (Small and Medium Enterprises Index) improved slightly to 54.7 in November from 54.5 in October, the second month of improvement. Meanwhile, the growth momentum indicator moderated by 0.1percentage points.”

“Performance index reached seven-month high for the manufacturing sector; was muted for services sector. The retail and wholesale sector was the main drag, with its sales and employment sub-indices entering contractionary territory.”

“Production picked up on stable demand; external demand increased, while domestic demand softened.”

“SMEs’ (Small and Medium Enterprises) borrowing costs rose, even though banks’ willingness to lend to SMEs recovered substantially.”