Workers assemble loader transmission mechanisms at a manufacturer in Qingzhou, China.
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China factory activity shrinks September grew for a fifth straight month as the world’s second-largest economy struggled to regain growth momentum.
The official manufacturing PMI was 49.8 in September, compared with 49.1 in August, 49.4 in July and 49.5 in June. According to data Data released by the National Bureau of Statistics on Monday.
A PMI reading above 50 indicates an expansion in economic activity, while a reading below that level indicates a contraction. The data beat the 49.5 expected by economists polled by Reuters.
Zhao Qinghe, a senior statistician at the National Bureau of Statistics, said that the overall economic climate has improved, with the PMI rising to 49.8%, manufacturing activities accelerating, and high-tech manufacturing and equipment manufacturing continuing to lead.
However, China Caixin PMI what The number was 49.3, compared with 50.4 in August, according to a private survey compiled by S&P Global. Data released by Caixin on Monday showed that China’s manufacturing industry experienced its worst contraction in 14 months in September, driven by falling demand and a weak labor market.
Erica Tay, director of macro research at Maybank Investment Bank Group, told CNBC that the Caixin series tends to favor exporters and private companies. She added that the sharp drop in new orders was not surprising.
“This year, manufacturers have been engaging in fierce price competition to increase sales. This often stimulates buyers to stock up. The latest data shows that bargain-hunting buyers have purchased the products they need in the near future,” Tay explain.
Manufacturing continues to face growing headwinds as a protracted economic slowdown and a housing crisis dampen domestic demand. At the same time, Western countries’ restrictions on Chinese exports, including electric vehicles, have also heightened concerns.
The data is the latest in a series of disappointing Chinese economic indicators. The world’s second largest economy remains The dilemma of weak domestic demandreal estate industry downturn and unemployment rate rising.
my country’s industrial profits fell 17.8% year-on-year in August Figures released by the National Bureau of Statistics on Friday showed this was the biggest drop in more than a year compared with a year ago.
China’s total retail sales of consumer goods, industrial production and urban investment all Growth rate is slower Last month, retail sales increased by 2.1% year-on-year, and industrial production increased by 4.5% year-on-year, which was better than expected.
Last week, the Chinese government stepped up efforts to boost domestic sluggish economic growth. The People’s Bank of China cut the deposit reserve ratio (RRR) – the amount of cash banks need to have on hand as reserves – by 50 basis points. The seven-day reverse repurchase rate was also lowered by 20 basis points from 1.7% to 1.5%.
China’s top leaders also held a high-level meeting chaired by President Xi Jinping on Thursday, calling for an end to the property downturn and emphasizing the need for stronger fiscal and monetary policy support.
Chinese stocks rose after news Markets post best week in nearly 16 years.
Andy Rothman, investment strategist at Matthews International Capital Management, noted that the latest PMI survey was conducted before last week’s stimulus announcement.
“But even if it’s not, it’s a good opportunity for us to reflect on how this will take time to play out,” he told CNBC. “This is just a small part of the process of trying to restore confidence among Chinese consumers and entrepreneurs.”
