Recovery in Chinese manufacturing slows unexpectedly in July
By Alexander Bueso
Date: Monday 01 Aug 2022
(Sharecast News) - Activity in China's factory sector continued to improve last month after Covid-19 containment measures were eased, but much more slowly than anticipated, the results of a key survey revealed.
Caixin's China manufacturing sector Purchasing Managers' Index retreated from a reading of 51.7 for June to 50.4 in July (consensus: 51.5).
Yet the survey compiler conceded that the rate of improvement was now only "marginal".
Some of the firms canvassed said the ongoing recovery had supported higher sales, but others reported that demand conditions were "relatively subdued".
Cost pressures on the other hand had eased "notably" from the month before, " with average input costs rising at the weakest rate since last December, while prices charged were cut for the third month running."
"Major macroeconomic indicators in the second quarter showed that the adverse impact of the latest round of Covid outbreaks on the economy is fading. The third quarter will therefore be a crucial period to get the economy back on track," said Dr. Wang Zhe, senior economist at Caixin Insight Group.
"As the authorities have made it clear that no ultra-massive stimulative measures would be forthcoming, effective implementation of existing policies is a more practical option.
"Moreover, the labor market remained under pressure and the financial situation of low-income groups deteriorated."
Special promo:
Trading the Forex Market? Visit FXmania.com to get advanced infomation about currencies and the Foreign Exchange
Market.
Email this article to a friend
or share it with one of these popular networks:
You are here: news
10 Lower Thames St,
London EC3R 6EN