An important indicator of economic activity in China fell back into contracting territory in November after a brief recovery in October, with demand remaining weak despite easing supply-side pressures.

The Caixin China General Manufacturing Purchasing Managers Index for November, a private indicator of monthly sector activity, stood at 49.9 for the month, just below the 50 point threshold between contraction and expansion. .

Yesterday, the country’s official PMI, released by the National Bureau of Statistics, was 50.1. The official PMI puts more emphasis on the activity of large public companies and is generally more optimistic than the Caixin gauge.

Like the official PMI, Caixin’s figures showed that easing power cuts, which hit the economy in October, slightly boosted output, which rose for the first time in four months. Inflationary pressure has also eased “significantly”, with the slowest rate of price increase in more than a year, Caixin said.

But the increase in production was offset by a drop in new orders. Manufacturers also downsized for the fourth time in as many months.

“Supply in the manufacturing sector has picked up, while demand has weakened. The easing of constraints on the supply side, in particular the alleviation of the electricity crisis, has accelerated the pace of the resumption of production, ”said Wang Zhe, senior economist at Caixin Insight Group.

“Policy makers should always focus on supporting small and medium-sized businesses. They should also pay attention to problems such as deteriorating employment, limited growth in household income and low purchasing power of consumer goods.