China's Manufacturing Activity Decreases in April 2023
Translator
Editor
1 May 2023 22:52 WIB
TEMPO.CO, Jakarta - China's manufacturing activities unexpectedly decreases on April 2023, creating pressure against policy makers attempting to increase the economy after Covid-19 pandemic in the middle of global uncertainty.
According to the country's National Statistics Bureau, Purchasing Manager Index (PMI) decreases to 49.2 from the previous 51.9 on March 2023, under 50 points that decides expansion and contraction in monthly activity.
The number missed an expected 51.4 predicted by economic experts in a polling organized by Reuters and marked the first contraction since back in December 2022.
The second largest economy grows even faster compared to expectation in the first quarter because of services consumption. However, the number of factory outputs were hindered. In addition, slowing down prices and excessing bank savings has triggered uncertainty.
The Politburo of the Chinese Communist Party, underlined on Friday, April 28, 2023, that restoring and expanding demands is the key to long-term recovery and to remind that the current improvement is restorative in nature "with weak momentum and inadequate demands."
"Lack of market demand and effects of high base effect of quick manufacturing recovery in the first kuarter," is one of the factors that caused contraction on April according to NBS senior statistics exert Zhao Qinghe.
The PMI revealed that new export demands decreased to 47.6 to 50.4 on March.
The manufacturing sector, which employs around 18% of the Chinese workforce remains under pressure because of weakening global demand. Several exporters stated that they have frozen their investments and some had even reduced manpower costs.
To improve trade and employment, the Chinese government cabinet announce a plan, including providing support for automotive export, facilitate visas for overseas business person and provide subsidy for companies employing college graduates.
Faith in the property sector, which have become Chinese pillar of growth, remains brittle. Several crises occurred in mid-2020 have caused a default among developers and construction of housing projects.
REUTERS
Click here to get the latest news updates from Tempo in Google News
