China’s industrial activity index continued to decline – Kommersant

The business activity index (PMI) in the Chinese industrial sector, which showed an unexpected decline in October, continued to move in the same direction at the end of November. As follows from report According to the National Bureau of Statistics of the People’s Republic of China, in November the PMI was 49.4, while economists had predicted this figure at 49.7. IN October The PMI was 49.5. A PMI level above 50 means an increase in business activity, below 50 means a decrease.

According to experts interviewed by Reuters, this trend indicates the possible need for more stimulation of the Chinese economy to restore confidence in the authorities’ ability to support the industry.

“The domestic market is not able to compensate for losses in Europe and the United States,” said Deng Wang, chief economist at Hang Seng Bank China. – Data shows that factories are producing less and employing fewer people. “In addition, the data suggests a loss of confidence in government policies.”

According to the expert, the industrial activity index is unlikely to recover in the near future, given the serious economic problems. And the main task at the moment, the economist points out, is to control the debt risks of local authorities and regional banks. Ting Lu, chief China economist at Nomura Bank, said that “despite a flurry of stimulus measures announced over the past few months, we believe it is still too early to say that the bottom has been passed.” According to the expert, we should expect “another fall towards the end of 2023 and the spring of 2024.”

Alena Miklashevskaya