The latest Caixin PMI data shows that Caixin China ’s manufacturing PMI has recorded 49.5, and has fallen into the contraction range for the first time in the past three months.
According to Caixin.com, the October China Manufacturing Purchasing Manager Index (PMI) index (PMI) announced on Wednesday (November 1) recorded 49.5, a decrease of 1.1 percentage points from September.
In October, the PMI of China's manufacturing industry was lower than the expected value of 50.8, which fell into the contraction range for the first time after July.
This trend is consistent with the PMI of the National Bureau of Statistics.China National Bureau of Statistics announced on Tuesday (October 31) and recorded 49.5 in the manufacturing PMI in October 2023, down 0.7 percentage points from September, and fell to the end of it.
Reuters reports that the manufacturing PMI released by the National Bureau of Statistics of China shows that although China's gross domestic product increased in the third quarter, the manufacturing industry is still unstable.
Caixin said that the demand for manufacturing in China for the third consecutive month was expanded for the third consecutive month, but weak foreign demand led to a reduction in the supply of manufacturing enterprises and the prosperity of the manufacturing industry.
In terms of sub -items, the demand for manufacturing in October has slowly expand and supply shrinkage.The new manufacturing order index is located in the expansion range for the third consecutive month, but the growth rate has slowed down, showing that the expansion speed of demand has slowed down.The new export order index is still lower than the Rongku line. Enterprises generally stated that the global economy is weak and high prices have caused overseas market sales to be frustrated. Manufacturing companies have reduced supply accordingly, and the production index is reduced to the Rongku Line.
The decline in output, the relatively sluggish customer demand, and the decline in procurement of enterprises, so raw material inventory has decreased.Due to the lack of sales and delay in delivery, the inventory of the finished product has increased significantly.
Wang Yan, a senior economist of Caixin Think Tank, said that entrepreneurs continue to visit.In October, the manufacturing prosperity was not high, domestic demand maintained the expansion trend, but the speed gradually slowed, and the supply, employment, and external demand decreased to varying degrees.In the third quarter, the economic recovery signs, but the foundation of economic recovery is still unstable.
Goldman Sachs analyst said in a report on Tuesday that in the third quarter, the labor market still showed signs of weakness, and most of the employment indexes under various PMIs declined in the quarter.
The manufacturer said that due to the rise in raw materials and oil prices, the inflation rate rose to a nine -month high.
In terms of enterprise expectations, the October manufacturing production and operation expectation index fell slightly in the expansion range.Enterprises that are optimistic about production prospects generally mention factors such as the release of new products, the development of new export markets, and the expected to be strong in the economy; other companies are worried that the weak external demand and the overall market conditions are still poor.
