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After the sentiment indicator published by the government the previous day fell below the critical level, a similar indicator from the economic magazine “Caixin” on Wednesday was very disappointing.
As “Caixin” announced, the key figure fell by 1.1 points to 49.5 points in October. Analysts had expected a slight increase on average to 50.8 points. The indicator is below 50 points, indicating a contraction in the economy.
The “Caixin” index focuses on smaller, private companies. The government’s indicator reflects the mood of larger state-owned companies. Since China exports a lot, both indicators largely depend on the external economic situation.
Recently, the weather in the domestically focused service sector has also deteriorated. However, according to the impressive key figure and “Caixin”, this is still within the expansion range.
China’s political leadership has been grappling with a raft of aid measures to counter the weak economy for some time. The crisis in the real estate market, which constitutes an important part of the economy, needs to be stabilized.
There have been signs of recovery lately. Economic growth in the third quarter was better than analysts expected, with a 4.9 percent increase from the previous year. However, the decline in purchasing managers’ indices shows that uncertainty among companies continues. (SDA)
Source :Blick
I’m Tim David and I work as an author for 24 Instant News, covering the Market section. With a Bachelor’s Degree in Journalism, my mission is to provide accurate, timely and insightful news coverage that helps our readers stay informed about the latest trends in the market. My writing style is focused on making complex economic topics easy to understand for everyone.
