Caixin PMI Rises: Mixed Signals in China’s Economic Recovery

01.06.2023

China’s official manufacturing PMI showed that industrial production continued to shrink. However, the PMI released by the economic magazine Caixin showed that industrial production was in a state of expansion. But even the Caixin survey showed employment and business confidence remained low.

(Deutsche Welle Chinese website) The Chinese economic journal Caixin announced on Thursday (June 1) that its Manufacturing Purchasing Managers Index (PMI) was 50.9, which is above the 50 line of expansion and contraction, which means that it belongs to the expansion range. Previously, economists expected the average to remain unchanged from April, or 49.5.

DPA reported that Caixin’s PMI reflects more of the atmosphere of small and medium-sized private enterprises.The day before, China’s official manufacturing PMI was below 50, indicating that economic activity was in contraction territory. The official PMI is more reflective of large and state-owned enterprises. The official services PMI, although in expansionary territory, also declined.

However, Caixin reported that,Improvement in manufacturing supply and demand has not been transmitted to the employment side,MayThe employment situation has further deteriorated，Employment index falls to lowest since March 2020。

Elsewhere, confidence in the manufacturing sector in a Caixin survey for the next 12 months fell to a seven-month low. This is mainly due to concerns about the global economic outlook.

China’s economic trend is showing mixed signals. In particular, industry has seen only a limited recovery after the end of the Covid-19 lockdown. There are still many problems in the real estate market. Many German companies, especially in the chemical industry, are also feeling the pressure of the market downturn.

According to Reuters, the PMIs for China and Japan rose last month, pointing to a recovery in factory production. South Korea, Vietnam and Taiwan continued to see PMI declines. Factory production in India saw the fastest growth since October 2020.

(German News Agency, Reuters)

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