In October, PMI Fell To 50.4%&Nbsp, And The Economic Growth Of Manufacturing Industry Dropped Significantly.

National Bureau of statistics, China

The report points out that manufacturing PMI has been in the expansion area for 32 consecutive months, but it is obviously close to the critical point - 50%, and has dropped to its lowest point since March 2009. It shows that the deterioration of the economic environment in Europe and the United States has an impact on China's economy, and the manufacturing economy is still growing.

In October, 4 of the 5 sub indices of manufacturing PMI fell.

Among them, the production index is 52.3%, down 0.4 percentage points from last month, and is 2.9 percentage points lower than that of the same period in history, but it continues to be above the critical point; the new order index is 50.5%, down 0.8 percentage points, the lowest since March 2009, slightly higher than the critical point, of which the export orders index is 48.6%, lower than 2.3 percentage points last month.

The survey also showed that in October, the purchasing price index of major raw materials for manufacturing enterprises was 46.2%, down 10.4 percentage points from last month, the first time it dropped to below the critical point since April 2009.

This shows that with the decline of the European and American economies, the international commodity prices continue to fall, and the implementation of a series of stable national price policy measures, the inflation pressure faced by the manufacturing industry is further eased.

Expert interpretation

Economic correction inflation eased

The economy is still in the callback stage.

Cai Jin, vice president of China logistics and purchasing Federation, said that this shows that China's economic growth is still in the callback stage, but PMI remains above 50%, indicating that the overall macro-economic growth is still modest.

Zhang Liqun, a researcher at the State Council Development Research Center, also believes that the PMI index is coming down, which indicates that the future economic growth will continue to decrease. In the three quarter, the growth rate of exports and investment has declined.

Inflation pressure eased.

Of course, from the current PMI index, we can still see some positive changes in the economic development. What is quite obvious is that the price rise has accelerated and the inflation pressure has eased significantly.

Data show that in October, the purchase price index was 46.2%, and the rate of decline was more than 10 percentage points, the first time since April 2009, it has dropped to 50%, reflecting the obvious easing of inflationary pressure.

According to Xinhua News Agency

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Manufacturing PMI is an internationally important leading indicator of macro-economy. It usually takes 50% as the critical point, higher than 50% reflecting the economic expansion of manufacturing industry, and less than 50% reflects the economic recession of manufacturing industry.