China’s regime suffers another economic setback: manufacturing industry contracts for third month in a row

Third month in a row manufacturing industry China has seen a decline that has exceeded even the most pessimistic forecasts, analysts say. National Statistics Office (ONE) Asian giant this Sunday

He purchasing manager index (PMI, an English abbreviation), reflecting the activity of the sector, amounted to 49 pointscompared to 49.4 in the previous month.

This indicator, which distinguishes between growth and contraction by exceeding or falling below 50 points respectively, reflects a continuous decline in the rate of economic growth. production activity

. PMI sub-indices, which include aspects such as new orders, employment and raw material inventories, also showed declines, remaining below the 50-point threshold and registering a decline from November.

Zhao QingheThe ONE statistician cited weak domestic demand and a decline in orders from abroad as the main reasons for this negative trend.

ONE also released its non-manufacturing PMI, which covers economic sectors. services and construction and which in the last month of the year amounted to 50.4 points, which is 0.2 more than in November and 0.1 higher than analysts’ forecasts.

Construction activity increased from 55 points to 56.9, while service sector activity remained at the previous month’s 49.3 points, a fresh fall that Zhao attributed to “weak consumption” in the tourism sector, partly “driven by “cold waves” that occurred this month in several areas of the Asian country.

The Composite PMI, which combines the evolution of the manufacturing and non-manufacturing industries, fell from 50.4 in November to 50.3 in the twelfth month of the year, again the lowest point of its historical series based on years of data. belonging pandemic.

Xi Jinping regime It began lifting anti-Covid restrictions in December 2022 after almost three years, sparking a recovery in the world’s second-largest economy.

But this recovery has been slowed by low consumer and business confidence. real estate crisisrecord levels youth unemployment and a slowing global economy, which is putting pressure on demand for Chinese goods.

Nearly 90% of Foreign Investment Floods Chinese Stock Market in 2023 hastily moved awaywhich reveals growing mistrust contrary to promise Xi Jinping regime revive the ailing economy.

Since its peak of 235 billion yuan ($33 billion) in August, net foreign investment in China-listed equities has fell by 87%, fell to 30.7 billion yuan.

Exodus Revealed Financial Times Through analysis of data from Hong Kong’s Stock Connect trading system, it reflects growing pessimism among international fund managers regarding the prospects for the world’s second largest economy.

(According to EFE and AFP)