China’s manufacturing sector activity index (PMI) fell to 49 points in December, the lowest level in the last six months. writes about this Bloomberg Referring to data from the National Statistics Bureau (NSB) of the PRC.
Experts state that PMI falling below 50 points indicates a decline in industrial production. This took place in an environment where demand in the country was weakening. According to analysts, weak PMI indicators may push the People’s Bank of China to ease monetary policy and reduce interest rates in early January.
At the same time, the service sector activity index increased from 50.2 points in November to 50.4 points. This was facilitated by the expansion of the construction sector due to increased infrastructure investments. However, the services index continued to remain in the decline zone.
According to the China National Security Service, the new orders sub-index for industrial products decreased to 48.7 points, and the new export orders index decreased to 45.8 points.
Experts explain this by the weakening of demand in China, including a protracted crisis in the real estate market. Imports are also negatively affected by falling consumer prices.
In general, December PMI data shows that the recovery in the Chinese economy is slowing down by the end of 2022. This could strengthen PRC authorities’ incentive measures.
Before that economists stated About the slowdown of the Chinese economy next year.
Previous investors Disappointed About the outlook for the Chinese economy and stocks.