economic situation
More optimism in China’s manufacturing sector again
For months, China’s manufacturing companies were saddened by their business situation. Now the trend has reversed again for the first time. This is also due to announcements by the government in Beijing.
China’s manufacturing sector is once again somewhat more optimistic about its business. As the statistics office in Beijing announced, the government-recorded Purchasing Managers’ Index (PMI) was 50.1 points in October, 0.3 points above the previous month’s value. For the first time since April, the leading indicator, which is important for decision-makers and investors, almost broke the threshold of 50 points, above which statisticians expect industrial activity to expand.
A survey by the financial service Bloomberg saw the PMI at just under 50 points. In the non-manufacturing sector, which includes the construction and service sectors, the index rose from a neutral value of 50 to 50.2 points, which also indicates more activity in this area. The mood is improving as a result of Beijing’s announced measures to combat the weakening economy.
Hope for further economic aid
The reasons for China’s economic problems include the crisis in the real estate sector that has been raging for several years, weak domestic demand and high unemployment among young people. To get people to spend more money again, the central bank lowered, among other things, interest rates on loans for buying real estate.
Observers are now hoping for further measures that could be announced in the coming week. Beijing wants to achieve economic growth of around five percent this year. Recently, however, the weaker economy of 4.6 percent in the third quarter compared to the same period last year and falling profits in China’s industrial production caused a stir. According to experts, this also reflects the tough price war, such as in the Chinese auto industry.
Notice from the Bureau of Statistics, Chinese
dpa
Source: Stern
