Manufacturing industry China's industrial companies remain less optimistic
For the fifth month in a row, China's industrial companies have shown little optimism in view of the uncertain economic situation. According to official figures, the state purchasing managers' index (PMI) for the manufacturing sector stood at 49.8 points in September.
30.09.2024, 04:49
SDA
The leading indicator, which is important for investors and decision-makers, rose by 0.7 points compared to the previous month, according to the Chinese statistics office in Beijing. However, the value was still below 50 points, signaling a decline in industrial activity.
The economic medium "Caixin" also published its independent PMI, which at 49.3 points also indicated a decline in activity and fell by 1.1 points compared to the previous month - the sharpest fall in 14 months. Economist Wang Zhe from the Caixin Insight Group said that the problem of insufficient domestic demand, pressure on the labor market and weak optimism among the population remained at the forefront. The statistics office's index tends to survey large and state-owned companies. "Caixin" also includes smaller private companies.
Further announcement by the central bank
The world's second-largest economy has been struggling with its sluggish recovery since the end of the coronavirus pandemic. Experts recently saw the government's growth target of around five percent for this year in jeopardy. In response, Beijing announced a comprehensive economic stimulus package last week. The central bank lowered key interest rates.
The economic slump is also largely due to a four-year crisis in the real estate sector, which was once a driver of the economy. Large cities such as Guangzhou, Shanghai and Shenzhen have recently eased further restrictions on house purchases. Late on Sunday evening (local time), the central bank also announced that borrowers can renegotiate existing loans with their banks. The measures should serve to encourage people to consume again.
