Manufacturing sector’s last month PMI by Caixin dropped to a low end over the past three years
The Caixin announced that Caixin Purchase Managers' Index (PMI) of China was 48.3 last month, down by 1.4% year-on-year. It is the lowest since February 2016, reflecting that growth of Chinese manufacturing sector was slow down further, but the downward in growth was the slightest since the slowdown over nine months. Both production and business volumes decreased in a slow pace but export order returned to grow.
There is, however, an optimistic change in the sector’s confidence towards future. Regarding to business outlook for the next 12 months, confidence of the sector rebound to a highest level since May last year. Part of the manufacturers expects that companies who are planning to implement business expansion will enhance output quantity in the future year.
The Caixin said, in overall, counter-cyclical regulatory policies, mainly focusing on infrastructure, did not acquire significant success in January. Domestic demand for manufacture shrank; nevertheless, there are progresses in Sino-US trade negotiation, leading to a positive foreign demand. Willingness to reduce stocks is strengthen and output volume is cut down, resulting to accumulate pressure in China economic downward momentum. It is predicted that the weakening situation will continue.