The economy Sentiment in Chinese industry brightens
After an unexpectedly significant improvement in sentiment in China's industry in October, the signs are pointing to growth again.
01.11.2024, 09:46
SDA
The Purchasing Managers' Index (PMI) for the manufacturing sector, based on a survey by the business magazine "Caixin", rose by 1.0 points to 50.3 points, according to data published on Friday.
The sentiment indicator thus recovered from the dip in September, when it fell to its lowest level in over a year. Analysts had expected an improvement to just 49.7 points. The index value also climbed above the so-called growth threshold of 50 points, which indicates an increase in economic activity.
The indicator, which is calculated by the magazine "Caixin", shows the mood in the country's smaller and private companies, which are also more export-oriented. On Thursday, China's statistics office published the government's purchasing managers' index, which measures sentiment in the country's larger and state-owned companies. The mood here also improved. The state indicator for industrial sentiment rose by 0.3 points to 50.1 points in October.
Weak domestic demand
According to official data, the manufacturing industry accounted for more than a quarter of China's economic output in the first half of this year. Purchasing managers' sentiment is considered an important leading indicator for the world's second-largest economy and is therefore closely watched on the financial markets.
However, China's economy continues to suffer from weak domestic demand. Trade disputes with the EU and the USA, as well as a severe real estate crisis, are causing concerns for the government in Beijing, which had set a growth target of around five percent for this year.
