China's factories expand at fastest pace in 3 yrs

The world's second-largest economy is on track to become the first to shake off the drag from widespread industry shutdowns.

China's factory activity expanded at the fastest pace in more than three years in November.

And the good news didn't end there.

Growth in the services sector also hit a multi-year high, expanding for the ninth straight month.

Recent production data has shown manufacturing is now at pre-pandemic levels.

China's official manufacturing PMI rose to 52.1 in November.

That's the highest reading since September 2017 and remains above the 50-point mark that separates growth from contraction.

The official PMI, which largely focuses on big and state-owned firms, showed strong new orders.

That bodes well for the export sector, which has benefited from strong foreign demand for medical supplies and electronics products.

Consumer demand has also bolstered confidence for small and medium sized firms.

But some analysts say risks remain.

A surging yuan and further lockdowns in many of its key trading partners could pressure Chinese exports.

One told Reuters that the recovery remained uneven across the manufacturing industry.

Adding that the PMI for textiles has stayed below the 50-point threshold.