Manufacturing industry Sentiment in China's industrial companies remains poor
The mood among Chinese industrial companies has remained gloomy. The Purchasing Managers' Index (PMI) for the manufacturing sector in China stood at 49.4 points in July, according to the Chinese statistics office in Beijing.
31.07.2024, 05:56
31.07.2024, 05:57
SDA
This is the third month in a row that the leading indicator, which is important for investors, has failed to exceed the 50-point mark, above which industrial activity is assumed to expand. In June, the statisticians had still calculated 49.5 points for the PMI.
In the non-manufacturing sector, which includes the service sector and the construction industry, sentiment deteriorated by 0.3 points compared to the previous month to 50.2 points, only slightly above the expansion threshold.
Several economic problems
China's government is struggling with a whole range of economic problems. The main negative factors are the long-standing real estate crisis and weak consumption. Added to this is a high unemployment rate among young people.
At a meeting this week, the Communist Party leadership signaled further aid for the economy in order to achieve the growth target of five percent by the end of the year.
