Categories: Market

Chinese industry is surprisingly losing momentum

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The sentiment barometer for the Chinese industry has not only been significantly weaker than economists had expected, but has also dropped below the 50-point threshold for the first time since December. (archive image)

Accordingly, the manufacturing industry value decreased from 51.9 to 49.2 in April compared to the previous month. Not only was the mood barometer significantly weaker than economists had expected, it also fell below the 50-point threshold for the first time since December. Values ​​above 50 indicate growth, while values ​​below indicate deterioration in sentiment.

The non-manufacturing index, which measures the activity in the services and construction sectors, decreased from 58.2 to 56.4 in April compared to the previous month. Although value is still clearly in growth territory, it has performed weaker than economists had predicted.

Experts explain the cold weather in the Chinese industry primarily with generally weak global demand. This threatens to slow the country’s economic recovery following the end of brutal “zero Covid” measures. In the first quarter of the current calendar year, the world’s second largest economy recorded an unexpectedly strong growth of 4.5 percent compared to the same period last year. (SDA)

Source :Blick

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