Mixed growth signals for China’s industry

China’s industry continues to grow – but at a slower pace, according to government data.

The country’s official purchasing managers’ index (PMI) fell in April from 51.9 to 51.1 points compared to the previous month, Beijing’s statistics office announced on Friday.

In contrast, a separate indicator compiled by the Chinese business magazine Caixin points to faster industrial growth. According to this, the PMI climbed from 50.6 to 51.9 points in April compared to the previous month.

According to Caixin, this is the largest increase since December. Above the 50-point mark, the industry is expected to grow.

While the official PMI is based on a survey of 3,000 relatively large companies, the Caixin index mainly surveys small and medium-sized firms.

A rigorous lockdown and strict entry controls meant that – apart from minor outbreaks – there have been virtually no cases of coronavirus in China since March 2020. Since then, the economy has been on the road to recovery.

The International Monetary Fund (IMF) estimates that the economy could grow by 8.1 per cent this year. The Chinese government is more cautious and set its official growth target at a value of “above 6 per cent.”

Source: GNA