The official Purchasing Managers Indices (PMI) for services and industry came in worse than expected in November. As the statistics office in Beijing announced on Wednesday, the mood barometer for the industry dropped to just 48 points from 49.2 in the previous month. This is the weakest reading since April. Analysts had expected 49 points.
The service barometer dropped to just 46.7 points from 48.7 in November. Economists had 48 points in the slip here. The overall index later suffered an equally significant decline from 49.0 points to 47.1. Values below the 50 mark for key economic barometers indicate a slowdown in growth momentum in China.
The official index measures mood in large, state-owned companies that have benefited primarily from extensive assistance aimed at stimulating the economy. Chinese business magazine “Caixin”‘s purchasing manager index (PMI) for the industry is expected to be released this Thursday. The Caixin Index is based on a survey of very small and medium-sized private companies in China.
As the tight corona policy continues to slow the Chinese economy, experts think economic measures and support from the Chinese central bank are likely in the coming months. Zhang Zhiwei, chief economist at Pinpoint Asset Management, expects momentum to continue to shrink in December and also in the first quarter.
(SDA)