China’s factory activity record fails in February
reports Mehr News Agency Style = “Text-align: Justify”> Based on the private sector poll of the shopping managers released on Monday, the increase has taken place at the same time as millions of immigrant workers returned to their workplace after a long New Year’s holiday. The result of this seasoned poll Kaqcin and S&P Global went beyond the Reuters polls, which was 2.3, and also increased to 4.1 on January and 4.3 on December.
The index, which has been over 5 since last October, still reflects the growth of production activities. The report was released on Monday following the release of the official PMI index on Saturday, which showed that China’s factory activity in February has increased with the fastest rate of growth since November.
based on Data from the National Statistics Department of China, the official PMI index reached 4.3 in February, while reported on January 4.3. Also, the non -productive PMI index, which includes the service and construction sector, has increased from 4.3 in January to 4.3 in February.
The statistics came as economists have warned that new US tariffs may put more pressure on China’s manufacturing sector. Last year’s production industry constituted China’s GDP, and any reduction in this sector could affect the role of export as the main driver of economic growth.
In February, new export orders have grown at the fastest rate since April. According to a poll on Monday, the increase was due to the growth of demand by foreign customers.
new US tariffs and economic concerns
Increasing foreign demand for Chinese manufacturing goods may be due to the action of US importers to increase purchase before new tariffs. According to Ziggon Huang , China’s economist at the Capital Economics Institute, this may indicate concern about increasing tariffs.
US President Donald Trump announced last week that it plans to impose 5 % tariffs on Chinese goods, in addition to the 5 % tariff imposed on February 7. Trump also threatened to raise the tariffs by up to 5 % during his campaign. The new tariffs are due to be implemented from March 5, as well as the important annual meeting in Beijing, which is expected to announce Chinese economic goals and new support policies.
While focusing on Beijing’s possible interactions, investors are waiting for more details of the Chinese government’s economic driving programs. These programs will increase government spending to boost domestic demand and tackle prices (negative inflation).
China’s economic growth challenges
At the next meeting of the National Congress of the People’s Congress of China, Chinese leaders are expected to accept a significant decline in domestic demand and provide expected details of financial stimuli. These measures will be aimed at maintaining economic growth and reducing the effects of trade tensions with the US.
Although a combination of financial support and increased purchases before tariffs helped the Chinese economy in February, the overall growth will probably decline in the first quarter of the year.
, according to economists Capital Ekonomix , if the Chinese government declares more powerful economic stimuli packages in Congress The current will be difficult.
Due to weakness in domestic consumption, the price of factory production remains under pressure, especially in the consumer and capital sector that has experienced a sharp decline in prices. On the other hand, the cost of some raw materials, such as copper and chemicals, has increased, which has more productive profit margins. Also, employment in the manufacturing sector has reached its lowest level in the past five years, as producers, especially in the consumer sector, continue to reduce costs.
