China’s Caixin Manufacturing Purchasing Managers’ Index (PMI) recorded 50.9 in February, the 10th consecutive month in expansionary territory, but has fallen for 3 consecutive months to the lowest level since June 2020, indicating a further weakening of the marginal effect of the manufacturing recovery, and worse than the market expectation of 51.3, the previous value of 51.5.
The relevant trend is consistent with the manufacturing PMI of the Bureau of Statistics. The manufacturing PMI released by the National Bureau of Statistics recorded 50.6 in February, 0.7 percentage points lower than the previous month, and also slowed down for 3 consecutive months.
During the period, manufacturing supply and demand continued to maintain the expansion trend, but the pace of expansion slowed down. the production index and new orders index recorded the lowest level in the past 10 and 9 months respectively in February. External demand continued to weigh on aggregate demand, with the new export orders index falling sharply below the boom and bust mark for the second consecutive month. In the survey, surveyed companies highlighted the negative impact of the winter Epidemic at Home and abroad on market sentiment.
The job market continued to be under pressure due to the slowdown in supply and demand growth, with the employment index in contraction territory for the third consecutive month in February and the rate of decline widened. After the slowdown in the pace of market recovery, companies are not eager to replenish the vacancies after the departure of employees. The number of backlogs of work still fell for the first Time in nine months, indicating weak market demand.
The price index continued to be high and inflationary pressures continued to increase, with the purchasing price index for manufacturing firms rising sharply above the boom and bust mark in February, but at a slightly slower pace. Interviewed enterprises said that raw material prices, especially industrial metal prices continue to rise rapidly, transport prices have also increased. Cost-side price increases also partially transmitted to the demand side, manufacturing enterprises in February factory prices continued to rise, but the rate of increase slowed.
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