China’s manufacturing activity contracted for the fifth straight month in August. There are growing calls for the Xi Jinping leadership to take concrete measures to boost the economy.
The National Bureau of Statistics announced on the 31st that the manufacturing purchasing manager’s index (PMI) in August improved slightly from 49.3 in July to 49.7. The median forecast of economists in a Bloomberg survey was 49.2. The boundary between activity expansion and contraction is 50.
The nonmanufacturing PMI, which covers construction and services, fell to 51 from 51.5 in July. Economists expected 51.2.
The Chinese economy recovered in the first quarter (1st quarter), but has been out of breath since then. The prolonged slump in the real estate market is a drag. China’s manufacturing sector has been hit in recent months by sluggish external demand and sluggish domestic consumption.
In a statement, Zhao Qinghe of the National Bureau of Statistics said of the August PMI, “It shows that the lack of market demand remains the main problem for Chinese companies. There is,” he pointed out.
Xing Zhao-peng, senior strategist at Australia and New Zealand Bank (ANZ), said manufacturing activity continued to contract but beat expectations in August’s PMI, suggesting China’s factories are making progress in restocking inventories. analysis. He said the sub-index of production and new orders expanded.
On the other hand, the non-manufacturing PMI “improved in construction and fell in services,” showing a “complex picture,” Xing said.
The service industry index for August slowed down to 50.5 from the previous month. Although activity continued to expand, it fell to its lowest level since December last year.
The Chinese authorities, wary of rising debt and worsening financial risks, remain cautious about large-scale economic stimulus measures. The outlook for income and employment is grim, and corporate and household interest in borrowing remains low.
Original title:China’s Factory Activity Contracts Again Amid Gloomy Outlook (1)(excerpt)
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2023-08-31 01:50:36
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