After receiving additional dire economic news on Monday, China launched a number of initiatives to increase domestic demand.
It did not, however, make any significant announcements of either increased expenditures or tax reductions.
China’s Manufacturing Sector Continues Shrinking
The National Bureau of Statistics reported on Monday that the official Purchasing Managers’ Index (PMI), which gauges activity in the manufacturing sector at mostly larger businesses and state-owned industries, was 49.3 in July.
After receiving additional dire economic news on Monday, China launched a number of initiatives to increase domestic demand.
It did not, however, make any significant announcements of either increased expenditure or tax reductions.
The National Bureau of Statistics reported on Monday that the official Purchasing Managers’ Index (PMI), which gauges activity in the manufacturing sector at mostly larger businesses and state-owned industries, was 49.3 in July.
The industry has now shrunk every month since April, but that result was slightly higher than the 49 in June.
Anything above 50 on the PMI scale implies expansion, whereas anything below it suggests recession.
Indicators for services and construction were included in the official non-manufacturing PMI, which dropped to 51.5.
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China’s Economic Recovery Amidst Covid Challenges
After receiving additional dire economic news on Monday, China launched a number of initiatives to increase domestic demand.
The index fell to its lowest point since February 2020 in December, at the commencement of the coronavirus pandemic, when that rate was lowest since that month.
After Beijing abruptly lifted nearly three years’ worth of harsh pandemic regulations that had been crippling local economies and isolating the second-largest economy in the world.
while initially keeping the virus at bay, Covid infections began to spread throughout China by the end of last year.
Li Chunlin, deputy head of the National Development and Reform Commission (NDRC), the nation’s top economic planner, stated during a press conference in Beijing that increasing consumption is the key to fostering recovery and increasing demand.
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