Despite efforts made by the Chinese government, China’s purchasing managers’ index is still below the 50-point mark.
Aside from the struggling economy, China’s December factory activity is also declining. (Photo: BBC)
China’s Low Purchasing Managers’ Index
China’s factory activity in December continued to decline, as per official data gathered from the Purchasing Managers’ Index. The Purchasing Managers Index was at 49.0, indicating a contraction for the third straight month.
This decline in the Purchasing Managers’ Index highlights a slowdown in the vitality of the manufacturing sectors. Despite the Chinese government’s attempts to stimulate the economy through targeted measures and infrastructure spending, the Purchasing Managers’ Index remains below the 50-point mark and the outcomes have been varied.
According to a published article by BSS, aside from the low Purchasing Managers’ Index, the recovery has been hindered by low consumer and business confidence, a housing crisis, and a global economic slowdown.
Achieving China’s annual growth target of approximately five percent seems difficult, especially with a Purchasing Managers’ Index below the 50-point mark.
Recovery From The Pandemic
In a published article by The Manila Times, this decline reflects the challenges faced by China’s economy in its recovery from the COVID-19 pandemic, including weak consumer and business confidence, a housing crisis, and high youth unemployment.
While there have been some signs of growth, China still faces difficulties in achieving its annual growth target of around 5%.
