Manufacturing industry Activity in China's manufacturing sector continues to decline
Management levels in China's manufacturing industry continue to take a cautious view of the market situation. The Purchasing Managers' Index (PMI) for the sector stood at 49.5 points in June, according to the Chinese statistics office in Beijing on Sunday.
30.06.2024, 04:56
SDA
This means that for the second month in a row, the leading indicator, which is important for decision-makers and investors, did not exceed the 50-point mark above which statisticians assume an expansion in industrial activity. Analysts had expected a similar figure in advance. In the previous month, the authority had also calculated 49.5 points.
In the non-manufacturing sector, which includes the service sector and the construction industry, sentiment deteriorated by 0.6 points to 50.5 points compared to the previous month and was therefore only slightly above the expansion threshold. The index published by the statistics office tends to reflect the situation at state-owned enterprises. According to the authority, the Chinese economy remains on course for expansion, but the basis for a sustained improvement needs to be strengthened, as stated in the press release.
China's government continues to battle against a real estate crisis that has lasted for years. For years, the sector was a popular way for Chinese to invest money. Due to losses in value and falling prices, many households therefore have less money to spend, which is contributing to weak domestic consumption. Added to this is a high unemployment rate among young people and pressure in international trade due to sanctions, such as in the USA, an important export market for China. The EU has also threatened to impose tariffs on electric cars manufactured in China.
