The Strategist

China's industrial PMI shows lower activity for the first time since July

11/02/2023 - 06:49

China's manufacturing sector's Purchasing Managers' Index (PMI) dropped in October for the first time since July, crossing the line that divides activity expansion from contraction.

The PMI's calculation partners, Caixin Media Co. and S&P Global, stated in a report that the index dropped from 50.6 points in September to 49.5 points.

An index value less than 50 points denotes a drop in industrial sector activity.

According to a consensus estimate from analysts, cited by Trading Economics, the PMI would increase to 50.8 points.

The head economist at Caixin Insight Group, Wang Zhe, stated that "the mood of the industrial sector cannot be called good." "The Chinese economy appears to have bottomed out, but there are few solid signs of a revival."

The study notes that China's imports decreased in October for the first time since July, while exports fell for the fourth consecutive month.