China's producing business: Optimism after difficult months

China's producing business: Optimism after difficult months

The current situation in China's producing business shows significant signs of lightening. After months of uncertainty and stagnating economic activity, the Chinese statistics office in Beijing has published the latest results of the shopping manager index (PMI). A value of 50.1 points was determined for the month of October, which represents an improvement of 0.3 points compared to the previous month.

The PMI is an important indicator of the general business situation because it reflects the activity in industry. If the index is over 50 points, this indicates an expansion of industrial activities. The current value thus marks a positive turn, because it is the first time since April that the index exceeds this important threshold.

positive developments and current measures

In addition to the positive developments in the processing industry, the non-processing sector, which includes construction and service services, has also made progress. Here the index rose to 50.2 points and thus also shows growing activity in this area. These changes are directly related to the measures that the Chinese government has announced in order to strengthen the weakening economy.

A look at the causes of the current economic challenges shows that the difficulties in the real estate sector, weak domestic demand and high youth unemployment play a role in particular. In order to promote the 소비, the central bank has reduced the loan interests for real estate purchases.

economic growth as a target

China's goal is to achieve economic growth of around five percent this year. Observers hope for additional, effective measures that could be announced in the near future. However, these must also take into account the problems of the extreme price competition in sectors such as the auto industry, which also contributes to the current situation.

The improvement of the mood within the producing trade could be an important step in the right direction. The PMI could continue to develop positively as long as the government undertakes proactive steps to stimulate the economy. For interested readers, detailed reports about these developments on www.nau.ch Available.