It is the beginning of a new month, which means that various indicators used to evaluate the health of China’s economy have been released. And in what has become somewhat of a ritual, the news is decidedly negative. Among the indicators released today was the official Purchasing Managers’ Index (PMI), which tracks the performance of the manufacturing industry. China’s PMI has registered worsening conditions in manufacturing for six consecutive months, but the figure released today by the country’s National Bureau of Statistics (NBS) was notable because it was lower than expected at 49.4 – the lowest its been since August 2012. The non-manufacturing PMI was down to 53.5 in January, a seemingly positive result considering that a score over 50 still represents growth in the service economy. But, for both the manufacturing and service sectors, the figures still indicate a contraction in available jobs.
Judging the state of an economy through a PMI figure by itself is a littl
More Indications of China’s Economic Decline
Feb. 1, 2016 While individual indicators may give a limited picture of an economy’s health, additional signs are emerging that the country’s economy is slowing.